Summary
The U.S. Department of Housing and Urban Development (HUD) recently announced the immediate end of new applications to the Restore-Rebuild program and changes to Tenant Protection Voucher (TPV) eligibility, limiting TPVs to units occupied within the past 12 months instead of 24. These shifts, communicated without advance notice or a transition period, may affect public housing agencies (PHAs), developers, and households relying on these programs for housing stability.
The U.S. Department of Housing and Urban Development (HUD) recently issued a memo stating that the Administration’s priorities have shifted and new applications for the Restore-Rebuild program would no longer be processed, effectively and suddenly ending the program. Specifically, the memo stated that no new Notice of Anticipated RAD Rents (NARR) will be processed. Public housing agencies (PHAs) that have pending applications, either having requested or received NARRs, may still be able to use the program. NARRs will be valid for a 90-day window, starting either on the memo effective date if already issued or 90 days from the date of issuance for pending applications. PHAs must substantially complete or have approval for either a HUD mixed-finance deal or a Low Income Housing Tax Credit (LIHTC) proposal to stay the expiration of the NARR.
While the President’s proposed Fiscal Year 2027 Budget proposed changes to Faircloth authority, the sudden announcement via an emailed memo will likely leave projects planning to use this program searching for other funding authority.
Additionally, the recent Office of Public and Indian Housing (PIH) Notice 2026-12 included a change to the Tenant Protection Voucher (TPV) funding policy that shortens the timeframe during which units are eligible for use under the program. PHAs will now only receive TPVs for units that were occupied within the last 12 months, down from 24 months. Projects that had submitted their financing plans ahead of the Notice’s issuance on May 5 still qualify under the 24-month policy.
The Administration has previously made policy changes without a transition period or advance communication to PHAs. TPVs are intended to offer flexibility to PHAs and provide protection for HUD-assisted families affected by changes in housing financing, such as site demolition or owners opting out of assistance programs. This policy adjustment may impact the ability of some PHAs to serve HUD-assisted households who are experiencing housing instability.
The Ballard Spahr Affordable Housing and Community Development Group will continue to monitor HUD program updates.
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