What is the Rental Assistance Demonstration Program?
The Rental Assistance Demonstration was created in order to give public housing authorities (PHAs) a powerful tool to preserve and improve public housing properties and address the $26 billion dollar nationwide backlog of deferred maintenance. RAD also gives owners of three HUD “legacy” program (Rent Supplement, Rental Assistance Payment, and Section 8 Moderate Rehabilitation) the opportunity to enter into long-term contracts that facilitate the financing of improvements.
FIVE THINGS YOU SHOULD KNOW ABOUT RAD PUBLIC HOUSING CONVERSIONS
[ ] RAD allows public housing agencies to leverage public and private debt and equity in order to reinvest in the public housing stock. This is critical given the 25.6 billion dollar backlog of public housing capital improvements.
[ ] In RAD, units move to a Section 8 platform with a long-term contract that, by law, must be renewed. This ensures that the units remain permanently affordable to low-income households.
[ ] Residents continue to pay 30% of their income towards the rent and they maintain the same basic rights as they possess in the public housing program.
[ ] RAD maintains the public stewardship of the converted property through clear rules on ongoing ownership and use.
[ ] The RAD program is cost-neutral and does not increase HUD’s budget. This program simply shifts units from the Public Housing program to the Section 8 program so that providers may leverage the private capital markets to make capital improvements.
The Housing Commission submitted applications to convert all of the public housing communities via the RAD program guidelines in December 2013. In March of 2015, HUD notified the Housing Commission that approvals were forthcoming and the process could begin during the late Spring of 2015.
Rental Assistance Demonstration (RAD) Meetings were held as follows:
- December 4, 2013 at 4:00pm, Stoney Hill, 16 residents in attendance
- December 5, 2013 at 6pm, Glen Square, 37 residents in attendance
- December 9, 2013 at 7pm, Freetown Village, 29 residents in attendance
- December 12, 2013 at 2:00pm, Pinewood East, 44 residents in attendance
- December 12, 2013 at 2:30pm, Pinewood Village, 55 residents in attendance
- December 18, 2013 at 7pm, Meade Village, 17 residents in attendance
- May 26, 2016 at 6:00 pm, Meade Village
- August 1, 2016 at 6:30 pm, Freetown Village