RAD FAQ
What is RAD?
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" 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.
Why RAD?
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 can residents be involved in the RAD process?
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 its response to them as part of the RAD application.
Will a RAD Conversion affect my housing assistance?
You will not lose your housing assistance and you will not be subject to eligibility re-screening as a result of the RAD conversion. You can remain in your unit regardless of your current income. However, EPCHA will continue to follow its annual and interim re-examination processes, including re-examination of your income to adjust your rent. These requirements will be in your lease.In a RAD conversion, your housing assistance will change from being public housing assistance to being Section 8 housing assistance under either the Project Based Voucher (PBV) program or the Project Based Rental Assistance (PBRA) program. EPCHA will choose whether to convert the unit to PBV or PBRA.
Will RAD conversion affect my rent?
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
When can a PHA start the RAD conversion process?
After notifying residents as outlined above, PHAs can apply to HUD to convert assistance under RAD.