The Consolidated and Further Continuing Appropriations Act of 2012 (Public Law 112-55) authorized the Rental Assistance Demonstration (RAD) with two components to apply proven financing tools to help preserve HUD's public and assisted housing stocks:
Rehabilitation and accessibility improvements being made at a Keene Housing Authority (NH) property. |
- 1st Component – allows Public Housing and Moderate Rehabilitation (Mod Rehab) properties to convert, under a competition limited to 60,000 units, to long-term Section 8 rental assistance contracts; and
- 2nd Component – allows Rent Supplement (Rent Supp), Rental Assistance Payment (RAP), and Mod Rehab properties to convert tenant-based vouchers issued upon contract expiration or termination to project-based vouchers.
Participation in RAD by public housing agencies (PHAs) and other eligible owners is voluntary. RAD is a limited demonstration and will be rigorously evaluated to assess the viability of these approaches in preserving affordable housing.
RAD is a central part of the Department's rental housing preservation strategy, which works to preserve the nation's stock of deeply affordable rental housing, promote efficiency within and among HUD guidelines, and build strong, stable communities.
The Department published the Final RAD Notice on Thursday, July 26, 2012. Owners of Public Housing and Mod Rehab properties applying for conversion under the first, competitive component of RAD should submit applications during the Initial Application period, which runs from September 24 to October 24, 2012. Owners of Rent Supp, RAP, and Mod Rehab properties seeking to convert assistance under RAD’s second, non-competitive component will be able to submit conversion requests immediately under the revised rules.
Please check this page for the latest information on RAD. You can email the Department with questions or comments. You can also join the RAD mailing list here.
RAD will:
- Improve the quality of affordable housing: PHAs and owners will be able to leverage substantial public and private funding to address critical capital needs and improve the condition of their properties.
- Preserve affordable housing: Once placed on a more stable Section 8 funding platform, converted properties will have long-term rental assistance contracts and use restrictions,
which will survive foreclosure or bankruptcy.
- Leverage private debt and equity: RAD will stretch federal funds by leveraging them with private debt and equity investments, enabling owners to make needed capital repairs.
- Enhance housing choice and mobility: PHAs and owners will offer residents the choice to
move with tenant-based vouchers after a reasonable tenure following the conversion of assistance, with a limited good-cause exemption.
- Bring Public Housing into the affordable housing mainstream: Long-term, Section 8 project-based assistance has proven to be an effective, reliable, and safe mechanism to fund affordable housing for over 30 years.
- Create jobs: Physical revitalization of assisted housing involves large-scale construction and infrastructure projects that create jobs and stimulate the local economy.
- Ensure opportunities for resident participation: Owners of converted properties must recognize resident organizations. In addition, all conversions will be subject to resident review and comment.
- Encourage green building standards: RAD encourages PHAs and owners to pursue
green building and energy efficiency by using industry-recognized standards for green
building, rehabilitation, and operation.
Application materials are in final development. Final application materials will be posted in September.
Supporting Contracts & Processing Requirements
1st Component
CHAP Milestones
2nd Component
Public Comment & Response
- September 17, 2012 - Kentucky Housing Association Annual Conference, Louisville
- September 17, 2012 - Georgia Association of Housing and Redevelopment Officials, Savannah
- September 26-27, 2012 - Region III & IV Mixed-Finance/RAD Workshop, Charlotte, NC
- September 28, 2012 - Illinois Association of Housing Authorities Annual Meeting
- September 28, 2012 - RAD Forum, Fort Worth Housing Authority
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