Environmental Review Requirements for RAD Transactions

In January 2020, HUD published updates to a document titled “Environmental Review Procedures for Rad Transactions.” The resource was originally published in 2014 and outlines how to perform environmental reviews for the Rental Assistance Demonstration (RAD).

Intended for RAD awardees, HUD staff, and other stakeholders, the updates reflect changes found in Revision 4 of the RAD Notice by expanding environmental reviews to all properties converting under RAD, including RAD for 202 PRACs. The updates also go further than Revision 4 to offer streamlined or tiered environmental reviews for properties undergoing a “straight” conversion (with no construction or rehab needs).

An environmental review is the process of reviewing a project and its potential environmental impacts to determine whether it meets federal, state, and local environmental standards. It is intended to ensure that the proposed project does not negatively impact the surrounding environment or have an adverse effect on residents’ health and safety.

An environmental review is required of all transactions under the RAD program, regardless of whether any repairs are being performed at conversion. Environmental review procedures for RAD transactions will vary depending on whether the transaction is using FHA insurance and whether the transaction is converting to Project-Based Rental Assistance (PBRA) or Project-Based Vouchers (PBVs).

Click here to access the resource.

Revised Fiscal Year 2020 Fair Market Rents 

In March 2020, HUD published a set of revised Fair Market Rents (FMRs) for six areas based on new survey data provided to HUD: Asheville, NC; Eugene-Springfield, OR; Portland, ME; Santa Maria-Santa Barbara, CA; Worcester, MA; and Guam. The revised FY 2020 FMRs for the six areas are effective April 10, 2020.

HUD also responded to public comments received on the original FY 2020 FMRs published by HUD in August 2019. Most of the comments not related to specific areas discussed inaccuracies of the FMRs and a need for more current and local data.

Fair Market Rents are used to determine payment standard amounts for the Housing Choice Voucher program, to determine initial renewal rents for some expiring project-based Section 8 contracts, to determine initial rents for housing assistance payment (HAP) contracts in the Moderate Rehabilitation Single Room Occupancy program (Mod Rehab), rent ceilings for rental units in both the HOME Investment Partnerships program and the Emergency Solution Grants program, calculation of maximum award amounts for Continuum of Care recipients and the maximum amount of rent a recipient may pay for property leased with Continuum of Care funds, and calculation of flat rents in Public Housing units.

To view the Federal Register Notice, please click here. To view HUD’s Fair Market Rents, please click here.