A PBRA conversion carries the earned income disregard for tenants already receiving it and closes it to everyone else

rad_pbra.income_calculation.earned_income_disregard · v1.0.0

Tenants who are employed and receiving the earned income disregard at the time of conversion continue to receive it after conversion in accordance with 24 CFR 960.255. No other tenant becomes eligible for the disregard after conversion. If a tenant receiving the disregard has a break in employment, ceases to use it, or the disregard expires under 24 CFR 960.255, the tenant stops receiving it and the owner is no longer subject to that regulation for the tenant. A tenant whose disregard ceases or expires after conversion is not subject to the RAD rent phase-in; the rent is adjusted immediately to the level the tenant's income then supports.

Confidence

high

Effective from

2019-09-05

Last reviewed

2026-08-31