Klein Hornig Closes First RAD-for-PRAC Conversion in the Country
By Jessie Cassella
Klein Hornig has successfully represented National church Residences in the closing of the first RAD-for-PRAC conversion in the country. This conversion will enable a 46-unit affordable senior property in Ohio to convert its annual Section 202 PRAC rental subsidy to a more stable 20-year PBRA rental subsidy, while also leveraging public and private debt and equity to finance important on-site renovations.
In 2018, Congress authorized properties currently assisted by Section 202 Project Rental Assistance Contracts (PRAC) to convert to project-based vouchers (PBV) or project-based rental assistance (PBRA) under HUD’s Rental Assistance Demonstration (RAD) program. On September 5, 2019, HUD issued the final RAD-for-PRAC implementation guidance, included as Section IV in HUD Notice H 2019-09. For a summary of key RAD-for-PRAC issues, please see this KH Housing Alert.
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This housing alert is intended as a source of information for clients and friends of Klein Hornig LLP. The content should not be construed as legal advice, and readers should not act upon information in this publication without professional counsel. This housing alert may be considered advertising under certain rules of professional conduct. Copyright © 2020 Klein Hornig LLP, All rights reserved.