The Spring Street Brief

Episode 108: HUD Waitlists RAD for PRAC Submissions Using PRI

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HUD has announced that all Preservation Rent Increase (PRI) funding available under the RAD for PRAC program has been exhausted for calendar year 2026. Any new RAD for Section 202/Project Rental Assistance Contract conversion plan submissions that include PRI funding and were submitted after May 29, 2026, will be waitlisted on a first-come, first-served basis. For sponsors, syndicators, lenders, and investors active in elderly affordable housing preservation, this announcement has immediate deal-structuring consequences.

Key Takeaways:

  • All PRI funding available under RAD for PRAC has been fully exhausted for calendar year 2026.
  • New RAD for PRAC conversion plan submissions with PRI submitted after May 29, 2026, will be waitlisted and evaluated first-come, first-served.
  • HUD's immediate priority is to assess funding availability and obligations tied to submissions already in the pipeline as of June 25, 2026.
  • Deals submitted before May 29 are likely queue-protected; post-cutoff submissions face an indeterminate hold.
  • PRI is often the critical bridge between existing PRAC contract rents and the rents required to support debt service in a conversion — making its absence a potential deal-stopper for many transactions.
  • No timeline has been published for when HUD will resolve the backlog or when new PRI capacity may become available.
  • Sponsors with post-cutoff submissions should confirm their waitlist position and engage their HUD field office directly to understand deal status relative to the June 25 assessment date.

    • The exhaustion of PRI capacity this far into the calendar year signals that demand for RAD for PRAC conversions is outpacing available resources — a reflection of both the scale of need in the aging Section 202 housing stock and a rapidly building pipeline. Stakeholders should monitor HUD's funding assessment closely and evaluate whether alternative deal structures are viable while awaiting PRI availability. Proactive communication with HUD field offices and early queue positioning will be essential for deals dependent on this funding source.

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    The Spring Street BriefBy Spring Street Management Group