Tap to get financing
HUD 223(f) Loans
Loan information
Loan FactsTerms, Qualifications, and GuidelinesHUD Multifamily LoansRatesCompliance RequirementsLIHTC Pilot ProgramAcquisition LoansRefinance LoansCosts and Fees
Resources
Insure Your PropertyHUD 223(f) FAQsGlossary
Application
ChecklistAttorney Closing ChecklistClosing ChecklistFirm Application Checklist
Developers
Third-Party ReportsAppraisal RequirementsEnvironmental AssessmentsMarket StudiesProject Capital Needs AssessmentsSeismic Reports
For Brokers
About
About UsContact UsLeadershipTeamWe're Hiring
(561) 556-6669
Get financing →
Newly Published
Nov 21 at HUD 223(f) Loans
What is Underwriting?
Nov 21 at HUD 223(f) Loans
What are Trended Rents?
Nov 21 at HUD 223(f) Loans
What are Rental Assistance Properties?
Explore the Janover Network
May 8 at HUD Loans
The 2025 Developer's Guide to HUD Lender Matching
Apr 22 at Janover Inc. Investor Relations
Janover Inc. Announces Corporate Name Change to DeFi Development Corporation
Apr 16 at Janover Inc. Investor Relations
Janover Inc. to Host X Spaces Conversation on NAV Premiums
Was This Article Helpful?
HUD 223(f) FAQs
2 min read

RAD: Rental Assistance Demonstration in Relation to HUD 223f Loans

The RAD (Rental Assistance Demonstration) Program gives PHAs (public housing authorities) the power to “preserve and improve public housing properties.” RAD also allows them to address the $26 billion dollar deferred maintenance backlog across nation.

In this article:
  1. HUD 223(f) Loans and Rental Assistance Demonstration (RAD)
  2. Other Important Information About the RAD Program
  3. To learn more about FHA 223f loans, fill out the form below and a HUD lending expert will get in touch. 
  4. Related Questions
  5. Get Financing
Start Your Application and Unlock the Power of Choice Experience expert guidance, competitive options, and unparalleled industry expertise.
Click Here to Get Quotes →
$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!

HUD 223(f) Loans and Rental Assistance Demonstration (RAD)

The RAD (Rental Assistance Demonstration) Program gives PHAs (public housing authorities) the power to “preserve and improve public housing properties.” RAD also allows them to address the $26 billion dollar deferred maintenance backlog across the United States.

RAD also lets owners of certain HUD ‘legacy’ programs enter into long-term contracts that facilitate the financing of necessary improvements. These legacy programs are:

  • Rent Supplement

  • Rental Assistance Payment

  • Section 8 Moderate Rehabilitation

  • Although Davis-Bacon prevailing wage rates don’t apply to FHA 223f mortgages, public housing conversions RAD I (RAD first component) transactions are subject to Davis-Bacon, even when using HUD 223f.

    Other Important Information About the RAD Program

    Regarding public housing conversions, HUD lists 5 things to know:

    • PHAs can use RAD to use public and private debt and equity to reinvest in public housing stock.

    • “In RAD, units move to a Section 8 platform with a long-term contract that, by law, must be renewed. This ensures that the units remain permanently affordable to low-income households."

    • “Residents continue to pay 30% of their income towards the rent and they maintain the same basic rights as they possess in the public housing program."

    • “RAD maintains the public stewardship of the converted property through clear rules on ongoing ownership and use."

    • “The RAD program is cost-neutral and does not increase HUD's budget. This program simply shifts units from the Public Housing program to the Section 8 program so that providers may leverage the private capital markets to make capital improvements."

    • For additional information, read: 

      • The HUD Multifamily RAD FHA Lenders FAQ sheet

      • New York State Public Housing Authority Directors Association - HUD’s Rental Assistance Demonstration (“RAD”) Program

      • To learn more about FHA 223f loans, fill out the form below and a HUD lending expert will get in touch. 

        Related Questions

        What is the Rental Assistance Demonstration (RAD) program?

        The Rental Assistance Demonstration (RAD) Program is a federal housing program administered by HUD, which was enacted in 2012 as a part of the Consolidated and Further Continuing Appropriations Act. The RAD program allows properties using HUD legacy programs to convert their properties to HUD Section 8 housing, which is much better understood, and more easily permits the use of private capital to fund rehabilitation work.

        Rental Assistance Demonstration, or RAD, is a Department of Housing and Urban Development (HUD) program which seeks to help investors preserve affordable housing across the U.S. To do this, the RAD program allows investors using four HUD legacy programs the ability to convert their housing into long-term Section 8 contracts. This helps investors by giving them more flexibility in terms of acquiring the financing to repair their properties, including making it easier to apply for the LIHTC (Low-Income Housing Tax Credit Program).

        Specifically, the RAD program allows property owners/investors in 4 different legacy programs the ability to convert into Section 8 contracts. These programs are:

        • Rental Supplement (Rent Supp)
        • Rental Assistance Payment (RAP)
        • Section 8 Moderate Rehabilitation (Mod Rehab)
        • Section 202 properties with Project Rental Assistance Contracts (PRACs)

        Specifically, residents in RAD properties will continue pay 30% of their income towards housing. By law, these Section 8 contracts must be renewed, so they provide a large degree of stability for both residents and landlords.

        How does RAD affect HUD 223(f) loans?

        HUD 223(f) loans can be used to finance a property participating in a HUD legacy program, such as Rent Supplement, Rental Assistance Payment, or Section 8 Moderate Rehabilitation, and then have it converted to Section 8 housing under the RAD program. In addition, combining a RAD conversion with HUD 221(d)(4) financing is an ideal fit for many borrowers who wish to upgrade a property currently participating in one of the HUD legacy programs. HUD 223(f) loans permit LTVs up to 90% and DSCRs as low as 1.11x for subsidized properties, and the HUD 221(d)(4) loan has a 40-year, fixed-rate term.

        For additional information, read:

        • The HUD Multifamily RAD FHA Lenders FAQ sheet
        • New York State Public Housing Authority Directors Association - HUD’s Rental Assistance Demonstration (“RAD”) Program

        What are the benefits of RAD for HUD 223(f) loans?

        The RAD (Rental Assistance Demonstration) Program gives PHAs (public housing authorities) the power to “preserve and improve public housing properties.” RAD also allows them to address the $26 billion dollar deferred maintenance backlog across the United States. Additionally, RAD I (RAD first component) transactions are subject to Davis-Bacon, even when using HUD 223f.

        For many borrowers who wish to upgrade a property currently participating in one of the HUD legacy programs mentioned above, combining a RAD conversion with HUD 221(d)(4) financing is an ideal fit. Borrowers can use this funding to finance substantial rehabilitations to their property. In general, properties with 90% or more low-income units (such as RAD conversions) are allowed LTVs up to 90%. In addition, rental assistance properties are permitted DSCRs as low as 1.11x. Finally, borrowers for Section 8 properties are eligible for a low 0.45% mortgage insurance premium (MIP), which is significantly lower than MIP for market-rate or affordable properties. Plus, the HUD 221(d)(4) loan has a 40-year, fixed-rate term, which makes it one of the longest term self-amortizing loans in the entire industry.

        HUD 223(f) loans may also be a good option for certain RAD owners, especially if their property is currently being funded with another type of loan with a higher interest rate and they would like to refinance. HUD 223(f) loans also permit LTVs up to 90% and DSCRs as low as 1.11x for subsidized properties. HUD 223(f) loans can also be used if a borrower would like to acquire a property participating in a HUD legacy program, such as the ones mentioned above, and then have it converted to Section 8 housing under the RAD program.

        Regarding public housing conversions, HUD lists 5 things to know:

        • PHAs can use RAD to use public and private debt and equity to reinvest in public housing stock.
        • “In RAD, units move to a Section 8 platform with a long-term contract that, by law, must be renewed. This ensures that the units remain permanently affordable to low-income households."
        • “Residents continue to pay 30% of their income towards the rent and they maintain the same basic rights as they possess in the public housing program."
        • “RAD maintains the public stewardship of the converted property through clear rules on ongoing ownership and use."
        • “The RAD program is cost-neutral and does not increase HUD's budget. This program simply shifts units from the Public Housing program to the Section 8 program so that providers may leverage the private capital markets to make capital improvements."

        For additional information, read:

        • The HUD Multifamily RAD FHA Lenders FAQ sheet
        • New York State Public Housing Authority Directors Association - HUD’s Rental Assistance Demonstration (“RAD”) Program

        What are the risks associated with RAD for HUD 223(f) loans?

        The risks associated with RAD for HUD 223(f) loans include the potential for increased costs due to Davis-Bacon prevailing wage rates, the need to comply with HUD rules and regulations, and the potential for reduced LTVs and DSCRs. Additionally, there is the potential for increased costs due to the need to convert from a public housing program to a Section 8 platform.

        For additional information, read:

        • The HUD Multifamily RAD FHA Lenders FAQ sheet
        • New York State Public Housing Authority Directors Association - HUD’s Rental Assistance Demonstration (“RAD”) Program

        What are the requirements for RAD in relation to HUD 223(f) loans?

        The HUD 223(f) loan requirements for RAD are:

        • LTVs up to 90%
        • DSCRs as low as 1.11x
        • Mortgage insurance premium (MIP) of 0.45% for Section 8 properties
        • 40-year, fixed-rate term

        For additional information, read:

        • The HUD Multifamily RAD FHA Lenders FAQ sheet
        • New York State Public Housing Authority Directors Association - HUD’s Rental Assistance Demonstration (“RAD”) Program
      In this article:
      1. HUD 223(f) Loans and Rental Assistance Demonstration (RAD)
      2. Other Important Information About the RAD Program
      3. To learn more about FHA 223f loans, fill out the form below and a HUD lending expert will get in touch. 
      4. Related Questions
      5. Get Financing
    Categories
    • HUD 223(f) Loans
    Tags
    • HUD 223f
    • HUD 223(f) Loans
    • HUD Multifamily Loans
    • FHA Multifamily Loans
    • HUD Multifamily Financing
    • RAD

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →

Janover: Your Partner in Growth

At Janover, we offer a wide range of services tailored to your unique needs. From commercial property loans and LP management to business loans and services for lenders, we're here to help you succeed.

Learn more about Janover →
Commercial Property Loans

Get the best CRE financing on the market.

Explore Financing Options →
LP Management

Syndicate deals on autopilot with Janover Connect.

Discover LP Management →
Business Loans

Match with the right kind of loan, in record time.

Find Business Loans →
For Lenders

Supercharge your loan pipeline. Unlock more deals.

Boost Your Loan Pipeline →
HUD 223(f) Loans

HUD 223(f) Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Commercial Real Estate Loans, SBA7a Loans, HUD Loans, Janover Insurance, Janover Pro, Janover Connect, and Janover Engage.

Janover Tech Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487
(561) 556-6669 
hello@hud223f.loans

Site Information

Privacy Policy
Terms of Use


For Commercial Mortgage Brokers

This website is owned by a company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

This website utilizes artificial intelligence technologies to auto-generate responses, which have limitations in accuracy and appropriateness. Users should not rely upon AI-generated content for definitive advice and instead should confirm facts or consult professionals regarding any personal, legal, financial or other matters. The website owner is not responsible for damages allegedly arising from use of this website's AI.

Copyright © 2025 Janover Tech Inc. All rights reserved.

+

Fill out the form below and get the pricing and terms banks can't compete with.