PBV or PBRA? The choice every RAD conversion makes
Every public housing conversion under RAD ends in one of two Section 8 contracts: project-based vouchers (PBV) or project-based rental assistance (PBRA). Most conversions have gone PBV. Of the 1,955 closed public housing conversions in HUD’s RAD data in October 2026, 1,296 chose PBV and 659 chose PBRA, and PBV carried about 61% of the converted units.
The choice decides who administers the contract for at least the first 15 to 20 years, how high rents can start, and how quickly residents can take a voucher and move.
Side by side
From HUD’s “Guide to Choosing Between PBV and PBRA for Public Housing Conversions” (April 2025) and the RAD notice as amended by Supplemental 4C:
| RAD PBV | RAD PBRA | |
|---|---|---|
| Who administers it | The housing authority’s voucher program, under HUD’s Office of Public and Indian Housing | HUD’s Office of Multifamily Housing, or a contract administrator |
| Rules | 24 CFR 983, as modified by the RAD notice | 24 CFR 880, as modified by the RAD notice |
| First contract term | At least 15 years, up to 20 | 20 years |
| Initial rent cap | Lower of reasonable rent or 110% of fair market rent, less utilities | 120% of fair market rent, less utilities; up to the lower of market or 150% with a rent comparability study |
| Annual increases | OCAF, not above reasonable rent | OCAF, not above the program maximum |
| Choice mobility | After 12 months of occupancy | After 24 months; turnover vouchers can be capped |
| New admissions at or below 30% of area income | 75% | 40% |
| Vacancy payments | Up to 2 months, if the admin plan allows | 80% of contract rent for 60 days |
| Annual financial reporting | Budget to the PHA board; audited statements on request | Audited statements through HUD’s FASS within 90 days |
Both carry the same core resident protections: no rescreening of current residents, a right to return after relocation, phased rent increases, resident participation funding and grievance rights, and since Supplemental 4C a 30-day notice before eviction for nonpayment.
How the choice plays out
Rents. PBRA’s higher cap matters when a project’s RAD rent is low against the market and the deal needs debt. HUD’s rents tool shows each unconverted project’s RAD rent next to both caps; the rent check puts them side by side with a debt estimate.
Control. PBV keeps contract administration inside the housing authority, which many PHAs prefer. PBRA moves it to HUD Multifamily, which lenders and tax credit investors already know from the rest of the affordable portfolio.
Residents. PBV lets residents leave with a voucher after a year instead of two, and targets more new admissions to the lowest incomes.
Financing. Either works with FHA insurance, tax credits and bonds. In HUD’s data, 936 of the 1,955 closed conversions used tax credits: 632 PBV deals and 304 PBRA deals.
Sources
- HUD, Guide to Choosing Between PBV and PBRA for Public Housing Conversions, April 2025.
- HUD, RAD Notice Revision 4 as amended by Supplementals 4B and 4C.
- RAD Resource Desk, Component 1 property export, October 24, 2026.