On January 19, 2021, HUD issued PIH Notice 2021-07, expanding eligibility for projects that do not include 9% LIHTC to blend Rental Assistance Demonstration PBV or PBRA operating subsidies with a greater number of non-RAD PBV vouchers. This allows Housing Authorities access to higher rents and combined with the 4% LIHTC floor allows for greater project feasibility. The percentages below show Housing Construction Costs (rehab or new construction planned) relative to the percentage of non-RAD project based vouchers.
PIH 2021-07 also provides a new RAD/Section 18 blending option for small PHAs (250 or fewer public housing units) for which up to 80% of the housing authority’s units in a RAD converting project may be project-based with non-RAD vouchers.