HUD’s Office of Public and Indian Housing and Office of Housing have issued a memorandum dated May 12, 2026, announcing immediate updates to the Restore-Rebuild initiative in alignment with the President’s FY2027 budget proposal and HUD’s repositioning goals.

HUD has announced significant changes to the Restore-Rebuild initiative, the process Public Housing Authorities use to develop new public housing using mixed-finance development with planned conversion to Section 8 assistance through the Rental Assistance Demonstration (RAD).

HUD stated that, consistent with the FY2027 budget proposal and broader efforts to reduce the federal public housing footprint, HUD is winding down the Restore-Rebuild initiative.

Effective immediately:

• PHAs that have not yet requested a Notice of Anticipated RAD Rents (NARR) may no longer submit new NARR requests.
• HUD will continue processing NARR requests already received as of May 12, 2026.
• Existing or future NARRs will become void after 90 days unless specific project milestones are met.

To maintain eligibility for continued processing, PHAs must demonstrate one of the following within the required timeframe:

• HUD approval for mixed-finance development or acquisition
• Submission of a substantially complete development or acquisition proposal
• Evidence that a Low-Income Housing Tax Credit (LIHTC) application has been submitted and is under review or approved

HUD also clarified that:

• Projects meeting one of the established criteria may continue through development and RAD conversion
• No broader changes are being made to RAD or public housing mixed-finance development policies at this time

PHAs and development partners should carefully review project timelines and documentation requirements to determine the impact on active or planned transactions. Review your Restore-Rebuild project status and confirm whether your transaction meets HUD’s updated eligibility requirements.