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New Funding for Preservation Rent Increases for RAD for PRAC Conversions
Section 202 Project Rental Assistance Contract (PRAC) properties converting through the Rental Assistance Demonstration (RAD) that require deeper investments may be eligible for a “Preservation Rent Increase” to ensure long-term viability and preserve critical housing serving the elderly. In the recently passed Appropriations bill, Congress provided an additional $4 million in funding to support Preservation Rent Increases for RAD for PRAC Conversions. This new funding amount replenishes prior appropriations from 2022 and 2023, which have largely been committed to completed conversions, and will help more properties move forward with needed rehabilitation and preservation work.
Eligibility for the Preservation Rent Increase is described in Housing Notice 2025-04. Owners can submit requests for Preservation Rent Increases through the RAD Resource Desk.
RAD Case Study: Palm Harbor Apartments
Learn how a 202 PRAC property in North Fort Myers, Florida used RAD to drive transformation and undertake major rehabilitation. By accessing new financing through RAD, the community was able to correct accessibility deficiencies, incorporate modern design features, and make significant upgrades to building systems, interior common areas, and unit interiors, strengthening long-term viability and improving the quality of life for residents. Find out more here: RAD for 202 PRAC at Palm Harbor Apartments. |