A RAD Use Agreement must be recorded in first position and survives abatement or termination of the HAP contract

rad_pbv.affordability_period.use_agreement · v1.0.0

A Covered Project must have a RAD Use Agreement in the form HUD prescribes. It must be recorded in a superior position to all other liens that could compromise its applicability or enforceability, and before any mortgage or security instrument relating to an FHA-insured or Risk-share loan. It runs until the conclusion of the initial term of the HAP contract, automatically renews on extension or renewal for a coinciding term, and remains in effect even if the HAP contract is abated or terminated unless the Secretary approves termination on a transfer of assistance. If the HAP contract is removed for breach, non-compliance or insufficient appropriations, new tenants in the previously covered units must have incomes at or below 80 percent of area median income at admission and rents may not exceed 30 percent of 80 percent of AMI for an appropriate-size unit for the remainder of the Use Agreement term.

Confidence

high

Effective from

2019-09-05

Last reviewed

2026-08-22