PHA estimates that upwards of $1 billion in new funding is needed to ensure the long-term preservation and viability of existing public housing developments. While no new HUD funds are being made available, converting public housing to the RAD Section 8 Project-Based subsidy program enables PHA to secure other, non-HUD financial resources to address the large backlog of deferred maintenance and other capital needs. RAD conversion allows PHA to leverage funds that are not available in the traditional public housing program, while ensuring the protection of tenants’ rights and preserving long-term affordability. With these funds, PHA plans to renovate and restore old housing stock, keeping them viable and affordable.
RAD also allows PHA to expand the supply of affordable housing through “transfer of assistance” from vacant scattered site public housing units. Through RAD conversion, PHA is able to transfer assistance from these vacant units to new affordable housing units developed by PHA and qualified development partners.
How will PHA ensure that public housing converted under RAD will continue to be available to low-income households?
As part of the conversion process, HUD requires that each housing development have a RAD use agreement, long-term ground lease, deed restrictions and other recorded restrictions to ensure that the housing continues to serve low-income families, seniors, and people with disabilities.