5900 5900-RAD_Sec18_Blend_Rider_UseAgmt_Final

Section 18 Non-RAD PBV Rider to RAD Use Agreement

U.S. Department of Housing and Urban Development

OMB Approval No. 2502-0612 (Exp. xx/xx/xxxx)

Public reporting burden for this collection of information is estimated to average 15 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Reports Management Officer, Paperwork Reduction Project (2577-0276), Office of Information Technology, U.S. Department of Housing and Urban Development, Washington, D.C. 20410-3600. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number.

This collection of information is required to apply to the Rental Assistance Demonstration program as authorized by the Consolidated and Further Continuing Appropriations Act of 2012 and subsequent appropriations. Requirements for RAD were established in Notice H-2019-09 PIH-2019-23 (HA) and subsequent notices. The information will be used to set out affordability and use restrictions for projects approved through Section 18 in conjunction with RAD and that will be preserved with project-based assistance. There are no assurances of confidentiality.

Section 18 Non-RAD PBV Rider to
Rental Assistance Demonstration (“RAD”) Use Agreement

Whereas, this Section 18 Non-RAD PBV Rider to RAD Use Agreement is part of the RAD Use Agreement to which it is appended, and capitalized terms shall have the meaning ascribed to them in the RAD Use Agreement.

Whereas, ____________________ (the “PHA”) owned and operated ______________ buildings containing __________ (___) dwelling units (collectively, the “Units,” or singularly, a “Unit”) at _________________________________________, more particularly described in Exhibit A, attached hereto and incorporated herein (the “Disposition Property”);

Whereas, the PHA owned and operated the Disposition Property as low-rent public housing with financial assistance provided by HUD under the U.S. Housing Act of 1937, as amended, 42 U.S.C. 1437 et. seq. (the “Act”);

Whereas, construction and/or operation of the Disposition Property was financed in part by HUD under the Act;

Whereas, the PHA requested HUD approval of the conveyance of the Disposition Property in accordance with RAD and Section 18 of the Act, and specifically based on Section 3) A.3.c of PIH Notice 2018-04: “Comprehensive Rehabilitation or Replacement through Rental Assistance Demonstration (RAD)” as amended or replaced from time to time. Specifically, the PHA is converting a portion of the public housing units at the Disposition Property under RAD and is replacing the units proposed for disposition under Section 18 of the Act with Section 8 project-based voucher (“PBV”) assistance in accordance with 24 CFR part 983. The aggregate number of replacement units (RAD and PBVs) meets the RAD “substantial conversion of assistance” requirements.

Whereas, as part of the RAD conversion, the PHA will convey the Disposition Property to the Project Owner who will own and operate the Disposition Property as a combination of RAD Section 8 PBV and non-RAD Section 8 PBV replacement units, which project will commonly be known as _______________ (the “Project”). The Project will contain _____ ( ) dwelling units, of which _______ (____) (the “RAD Units”) will be subject to a RAD Section 8 PBV Housing Assistance Payment (“HAP”) contract and _____ (____) dwelling units (the “Non-RAD Units”) will be subject to a non-RAD Section 8 PBV HAP contract in accordance with HUD’s Section 18 disposition approval.

Now Therefore, in consideration of the foregoing and other good and valuable consideration, the parties hereby agree as follows:

1. Applicability of RAD Use Agreement. Except as noted or clarified in this Rider, all terms and conditions of the RAD Use Agreement applicable to the Project, the Project Owner and the Assisted Units also apply to the Non-RAD PBV Units.

2. Section 18 Disposition Approval Use Restriction. In accordance with the terms and conditions of HUD’s approval of the conveyance of the Non-RAD Units for below fair market value based on a finding of commensurate public benefit pursuant to 24 CFR 970.19, the Non-RAD Units must be used exclusively as housing for low-income families under the Section 8 PBV program for a period of not less than 40 years. For purposes of this Rider, the term "low-income families" is defined at Section 3(b)(2) of the Act and means families with incomes at or below 80% of median income for the area.

3. Term.

1. Section 2 of the RAD Use Agreement regarding the Term is modified to specify that the following excerpt does not apply to the Non-RAD Units:

Unless otherwise approved by HUD, this Agreement shall remain in effect through the initial term of the RAD HAP Contract and for additional periods to coincide with any renewal term of the RAD HAP Contract or any replacement HAP Contract. It is the intention of the parties that the RAD HAP Contract and this Agreement shall each renew upon the completion of its initial term. Therefore, this Agreement shall remain in effect until a release is recorded as contemplated by Section 8. Such release shall be the evidence of the non-renewal of the HAP Contract, of the determination not to execute a replacement HAP Contract and of the termination of this Agreement. This Agreement will survive abatement of assistance or termination of the RAD HAP Contract unless otherwise approved by HUD.

2. The applicability of this Rider shall extend for any periods that are coterminous with any extended HAP contract applicable to the non-RAD PBV units. The parties intend to exercise the rights to extend the HAP contract to the maximum extent as may be permitted by section 8(o)(13)(G) of the Act, as amended; 24 CFR part 983, as amended; and 82 Fed. Reg. 5458, 5468.

4. Transfers. Non-RAD Units are not subject to any of the transfer provisions, including rights to transfer of assistance, set forth in the RAD Notice. Section 7 of the RAD Use Agreement regarding restrictions on transfer is modified to specify that the following excerpt does not apply to the Non-RAD Units:

In the event of a default under the RAD HAP Contract including, without limitation, upon any transfer of the Property or Project without HUD consent, upon expiration of any applicable notice and/or cure periods, HUD may terminate the Owner’s interest in the HAP Contract, including all of the Owner’s rights and obligations therein, and transfer the HAP Contract to another “Owner,” as defined in section 8(f)(1) of the Act, to ensure the continuation of rental assistance, as authorized under the HAP Contract.

[End of Rider to RAD Use Agreement]

Exhibit A

Legal Description

Page 3 of 3

Form HUD- ____ (__/2020)