The Rental Assistance Demonstration (RAD) Program is a program of the Department of Housing and Urban Development (HUD) that seeks to preserve affordable housing.
Public housing across the country needs more than $26 billion in repairs, and many public housing agencies (PHAs) do not have enough money to keep units in good condition. RAD provides PHAs a way to stabilize, rehabilitate, or replace properties”. (Housing and Urban Development, RAD Toolkit, 2018) (pg.1)
The VCTT converted its entire LIPH Portfolio to Section 8 project-based vouchers (PBV) on June 14, 2019.
The Rental Assistance Demonstration (RAD) allows public housing agencies (PHAs) and owners of HUD-assisted properties to convert units to project-based Section 8 programs, providing an opportunity to invest billions into properties at risk of being lost from the nation's affordable housing inventory. Additionally, it gives owners of three HUD "legacy" programs (Rent Supplement, Rental Assistance Payment, and Section 8 Moderate Rehabilitation) the opportunity to enter into long-term contracts that facilitate the financing of improvements.
The 1.2 million units in the Public Housing program have a documented repair backlog of nearly $26 billion. As a result, the public housing inventory has been losing an average of 10,000 units annually through demolitions and dispositions. Meanwhile, the 38,000 units assisted under HUD's legacy programs are ineligible to renew their contracts on terms that favor modernization and long-term preservation. The current conditions of many of these properties prevent reinvestment and recapitalization efforts in the communities with the most need. By drawing on an established industry of lenders, owners, and stakeholders, RAD allows PHAs and owners of HUD-assisted housing to preserve and improve affordable housing units that could be subject to vouchers and demolition. RAD creates greater funding certainty while allowing increased operational flexibility to empower PHAs and owners to serve their communities.
How does RAD affect me as a Public Housing Resident?
Question: Will a RAD conversion affect my housing assistance? Answer: You will not lose your housing assistance, and you will not be rescreened because of a RAD conversion. Even though a RAD property can use private money to make big repairs, it will still receive money from HUD. With this subsidy from HUD, PHAs will manage RAD properties through either the PBV or PBRA programs. RAD requires that converted properties be owned or controlled by a public or nonprofit entity.
Question: Will a RAD conversion affect my rent? Answer: If your building or development is converted to PBV or PBRA, your rent contribution will most likely be the same as it was under public housing—generally no more than 30% of your household's adjusted gross income. Since the project-based Section 8 programs also set resident rents at 30% of adjusted income, most residents will not have rent increases as a result of a RAD conversion.
Question: How can residents be involved in the RAD process? Answer: Before PHAs can apply to participate in RAD, HUD requires them to notify all residents in a development proposed for RAD conversion about their plans and conduct at least two meetings with those residents. These meetings are an opportunity for you to discuss the proposed conversion plans with your PHA, ask questions, express concerns, and provide comments. The PHA is required to submit your comments and responses to them as part of the RAD application.
Question: When can a PHA start the RAD conversion process? Answer: After notifying residents as outlined above, PHAs can apply to HUD to convert assistance under RAD.
Question: Will I have to move if my building or home is being rehabbed? Answer: Most needed repairs made as part of RAD are likely to be small, and you will be able to stay in your home during construction. However, some apartments and buildings will require more extensive rehab. In these cases, you will be temporarily relocated but will have the right to return to your development once construction is completed. Generally, temporary relocation should not last longer than 12 months.