[Federal Register Volume 86, Number 173 (Friday, September 10, 2021)]
[Notices]
[Pages 50733-50734]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-19513]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6276-N-01]


Rental Assistance Demonstration: Post-Conversion Replacement of 
Units Under a PBV Housing Assistance Payment Contract

AGENCY: Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner and Office of the Assistant Secretary for Public and 
Indian Housing, HUD.

ACTION: Notice.

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SUMMARY: This notice establishes the process by which assisted units 
under a Project Based Voucher (PBV) Section 8 Housing Assistance 
Payment (HAP) contract originally executed through a conversion under 
the Rental Assistance Demonstration (RAD) can be replaced in the event 
that the original units would be unavailable for occupancy due to a 
proposed demolition and reconstruction of the units, as a result of 
natural disaster, or other causes.

DATES: This notice is effective on September 10, 2021.

ADDRESSES: Interested persons are invited to submit questions or 
comments electronically to <a href="/cdn-cgi/l/email-protection#e0928184a0889584ce878f96"><span class="__cf_email__" data-cfemail="1f6d7e7b5f776a7b31787069">[email protected]</span></a>.

FOR FURTHER INFORMATION CONTACT: To assure a timely response, please 
direct requests for further information electronically to the email 
address <a href="/cdn-cgi/l/email-protection#8ffdeeebcfe7faeba1e8e0f9"><span class="__cf_email__" data-cfemail="43312227032b36276d242c35">[email protected]</span></a>. Written requests may also be directed to the 
following address: Office of Housing--Office of Recapitalization, 
Department of Housing and Urban Development, 451 7th Street SW, Room 
6230, Washington, DC 20410. The Office of Recapitalization phone number 
is (202) 708-0001.

[[Page 50734]]


SUPPLEMENTARY INFORMATION:

1. Replacement of Units Under a PBV Section 8 Housing Assistance 
Payment Contract

a. Background

    The RAD statute \1\ authorizes the conversion of properties 
assisted under the public housing program to assistance under project-
based Section 8 assistance in order to preserve and improve the 
housing. The statute includes various provisions envisioning the long-
term preservation of the assisted units: HUD must require the 
``substantial conversion of assistance,'' only permitting a de minimis 
reduction in assisted units; properties must be placed under long-term 
assistance contracts; upon expiration of the initial contract and any 
renewal contract the public housing authority (PHA) shall offer and the 
owner of the property shall accept renewal of the contract; a new Use 
Agreement must be recorded on the land; and the assistance may be 
transferred to a new site at or after conversion.
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    \1\ Section 237 of Title II, Division L, Transportation, Housing 
and Urban Development, and Related Agencies, of the Consolidated 
Appropriations Act, 2012 (Pub. L. 112-74). The RAD statutory 
requirements were amended by the Consolidated Appropriations Act, 
2014 (Pub. L. 113-76, signed January 17, 2014), the Consolidated and 
Further Continuing Appropriations Act, 2015 (Pub. L. 113-235, signed 
December 16, 2014), the Consolidated Appropriations Act, 2016 (Pub. 
L. 114-113, signed December 18, 2015), the Consolidated 
Appropriations Act, 2017 (Pub. L. 115-31, signed May 4, 2017), and 
the Consolidated Appropriations Act, 2018 (Pub. L. 115-141, signed 
March 23, 2018).
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b. When RAD Units Become Unavailable for Occupancy

    In the event that the property placed under a RAD PBV HAP contract 
through the conversion of assistance from public housing becomes 
unavailable for occupancy, and in order to continue the effective 
conversion of assistance of such properties, HUD finds it necessary to 
facilitate the replacement of assisted units under new assistance 
contracts under the same terms and conditions established in the 
original RAD PBV HAP contract or any renewal contract. Notably, RAD 
already includes a provision permitting the transfer of assistance to a 
new site. By this notice, HUD is supplementing the provision to 
transfer assistance by providing a mechanism for Public Housing 
Agencies (PHAs) to enter into a RAD Interim Agreement and, 
subsequently, a new RAD PBV HAP contract when a direct transfer of the 
HAP contract to new, eligible units is not possible and there would be 
a temporary period when a HAP contract is not in effect. This might 
occur when, for example:
    <bullet> The owner adequately justifies a specific and well-
developed redevelopment plan that requires the units to be unavailable 
for occupancy while the PHA is replacing the units on-site; or
    <bullet> An unforeseen event (such as a natural disaster) renders 
the units uninhabitable.
    In such circumstances, the owner must continue to comply with all 
applicable fair housing and civil rights requirements, which include 
the obligations under Section 504 to provide mobility and sensory 
accessible units to tenants with disabilities who require those 
features and provide tenants reasonable accommodations, and the Uniform 
Relocation Act as applicable.

c. RAD Interim Agreement

    During any period when a normal RAD PBV HAP contract cannot 
reasonably remain in force and is terminated, under conditions that HUD 
may establish, including for the protection of residents, HUD, the PHA, 
and the owner as applicable would enter into an Interim Agreement that 
provides the authority to carry forth the RAD requirements to the RAD 
PBV HAP contract that will cover the replacement units. The Interim 
Agreement would be executed prior to any termination of the original 
RAD PBV HAP contract and would implement the transition of the rental 
assistance from the RAD PBV HAP contract and ultimately to the 
replacement RAD PBV HAP contract. It would preserve the authority for 
the RAD PBV rental assistance to commence under the replacement RAD PBV 
contract. Further, the Interim Agreement would set forth any applicable 
development requirements and the conditions which must be met before 
the replacement RAD PBV HAP Contract can be executed.

II. Finding of No Significant Impact

    A Finding of No Significant Impact (FONSI) with respect to the 
environment has been made in accordance with HUD regulations in 24 CFR 
part 50, which implemented section 102(2)(C) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The FONSI is 
available for inspection at HUD's Funding Opportunities web page at: 
https://www.hud.gov/program_offices/spm/gmomgmt/grantsinfo/fundingopps.

Dominique Blom,
General Deputy Assistant Secretary for Public and Indian Housing.
Lopa Kolluri,
Principal Deputy Assistant Secretary for Housing.
[FR Doc. 2021-19513 Filed 9-9-21; 8:45 am]
BILLING CODE 4210-67-P


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