A team of Nixon Peabody affordable housing attorneys collaborated with clients and HUD's Office of Recapitalization to close the first three RAD Component 2 preservation deals using 20-year Section 8 Project Based Rental Assistance (PBRA) contracts. All three transactions are located in New York State.
PBRA contracts were executed on December 30, 2015, after HUD was able to coordinate the funding of the contracts with the Office of Management and Budget and Treasury. The New York State Housing Finance Agency funded two of the transactions, which involved properties serving elderly residents. New York City's Housing Development Corporation funded the other transaction located in the Bronx.
Congress authorized the PBRA subsidy as an alternative to project based vouchers for RAD Component 2 transactions in the fiscal year 2015 Omnibus Appropriations legislation.