Question Details

Question ID: WEB07112014_10_02030
Title: "Future Changes" Provision in RAD PBRA HAP Contract
Question: The RAD Project Based Rental Assistance (PBRA) Housing Assistance Payment (HAP) contract, HUD Form 52624, is inconsistent with the Multifamily Assisted Housing Reform and Affordability (MAHRA) PBRA HAP contract with respect to future changes in key terms. Can a PHA request that the RAD contract include language that would conform with MAHRA in this area?
Answer: Yes. At the request of the PHA, the parties may amend the RAD PBRA HAP by adding a sentence to the end of Section 1.2(c), and by adding a new Section 1.2(d), as noted below in CAPS. (c) HUD Requirements. The Contract shall be construed and administered in accordance with Notice PIH 2012-32 (Notice). With the exception of the provisions of 24 C.F.R. Part 880 and section 8 of the Act that are identified in Appendix I and Appendix II of the Notice, respectively, as inapplicable, the Contract shall further be construed and administered in accordance with all statutory requirements and all HUD regulations and other requirements, including any amendments to and/or changes in statutory requirements, HUD regulations (including 24 C.F.R. Part 880), and other requirements. HOWEVER, ANY CHANGES IN HUD REQUIREMENTS, EXCEPT TO THE EXTENT REQUIRED BY STATUTE, THAT ARE INCONSISTENT WITH THE PROVISIONS OF SECTIONS 2.5(a)(1) AND 2.8, SHALL NOT BE APPLICABLE. (d) STATUTORY CHANGES DURING TERM. IF ANY STATUTORY CHANGE DURING THE TERM OF THE CONTRACT IS INCONSISTENT WITH SECTION 2.5(A)(1) OR 2.8 OF THE CONTRACT, AND IF HUD DETERMINES, AND SO NOTIFIES THE CONTRACT ADMINISTRATOR AND THE OWNER, THAT THE CONTRACT ADMINISTRATOR IS UNABLE TO CARRY OUT THE PROVISIONS OF SUCH SECTIONS BECAUSE OF SUCH STATUTORY CHANGE, THEN THE CONTRACT ADMINISTRATOR OR THE OWNER MAY TERMINATE THE CONTRACT UPON NOTICE TO THE OTHER PARTY. NOTWITHSTANDING SUCH TERMINATION, THE PROJECT SHALL REMAIN SUBJECT TO THE RAD USE AGREEMENT ENCUMBERING THE PROPERTY ON WHICH THE PROJECT IS LOCATED. These changes will conform the RAD PBRA HAP to the MAHRA PBRA HAP with respect to “future changes.” HUD will shortly prepare a formal change request under the Paperwork Reduction Act to incorporate these new provisions. The above changes will ensure the commensurate private investment necessary to improve the physical condition for residents and will also ensure the long term affordability restrictions remain in place.
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Categories:PHAs: Closing | PHAs: Post-Closing
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