LeadingAge reports that after months of advocacy, the Senate HUD appropriations subcommittee has included eligibility for HUD’s Rental Assistance Demonstration to include Project Rental Assistance Contracts (PRACs).

This is great news and the first step in what will be a long fiscal year 2017 appropriations season. There are 2,900 Section 202 communities with PRACs; many of them could decide that participating in RAD will help them preserve their affordable properties.

If the policy change is enacted in a final fiscal year 2017 bill, Section 202 communities with PRACs could convert their subsidy stream to Section 8 project-based rental assistance or project-based vouchers. Conversion under RAD would allow PRAC communities to take on debt or use other financing mechanisms to renovate and maintain communities in ways that are currently prohibited for PRACs.

LeadingAge is also working to get the PRAC to RAD policy change in the House HUD appropriations bill.