HUD: New HUD Guidance: Preservation Rent Increase for RAD for PRAC Conversions
On Friday, the U.S. Department of Housing and Urban Development (HUD) published Housing Notice 2025-04, introducing important updates to the Preservation Rent Increase for eligible Section 202 Project Rental Assistance Contract (PRAC) properties pursuing a Rental Assistance Demonstration (RAD) conversion.
These changes are designed to support greater financial stability and encourage critical investments in affordable housing.
Key Updates in the Notice:
Substantial Rehabilitation or New Construction: Eligible for up to $300 per unit, per month.
Moderate Rehabilitation: Eligible for up to $200 per unit, per month.
Broadband Installation: Eligible for an additional $50 per unit, per month.
Small Projects (20 units or fewer): Eligible for up to 120% of Fair Market Rent (FMR).
These targeted increases will help ensure long-term preservation of affordable housing and support upgrades that improve residents’ quality of life. Owners can submit requests for Preservation Rent Increases through the RAD Resource Desk.
Reminder! Join Us for a Live Q&A. As a reminder, we invite you to join the upcoming RAD Office Hours for 202 PRAC Owners on Monday, September 29, 2025, at 1:00 PM ET, for an open Q&A on the Preservation Rent Increase.
Join RAD Office Hours for PRAC Owners and Partners via Microsoft Teams
Meeting ID: 215 935 401 1139
Passcode: K3ES3nQ6
Dial in by phone: +1 509-904-0877, 664274791#
For questions, feel free to reach out to us at rad@hud.gov.
