2025 Unit Based Subsidy - Restore-Rebuild Initiative

In 2021, HUD introduced a program called Faircloth to RAD Conversions (“RR”) which has since been renamed and is now known as the Restore-Rebuild initiative . The Restore-Rebuild initiative enables a housing authority to utilize its authority to add additional ACC public housing units under its Faircloth Authority limit. Procedurally, developments approved as part of the Restore-Rebuild initiative go to a financial closing as a public housing development through a Mixed Finance transaction but receive pre-approval to convert under the RAD program to project based vouchers (“PBV”) as soon as the units are eligible for occupancy. With early-stage RAD conversion approvals, lenders and investors will have the revenue certainty through familiar Section 8 PBV Housing Assistance Payments (“HAP”) contracts to underwrite the construction of these projects. A Restore-Rebuild conversion goes through three phases: (1) Pre-Development (ACC) (2) Construction and (3) Conversion to Permanent Financing (RAD). For an in-depth discussion of the of the Restore-Rebuild initiative please see Attachment A – Restore-Rebuild Guide 11-2024.