HUD’s Office of Policy Development and Research (PD&R) put together a tally of activity in the Rental Assistance Demonstration Program (RAD) as of September 15, 2014. A total of 414 public housing agencies (PHAs) submitted 1,808 applications, requesting RAD conversion authority to convert 180,737 public housing units to project-based Section 8. The legislation authorizing RAD only allows 60,000 public housing units to be converted by law.
HUD has issued Commitments to enter into a Housing Assistance Payments Contract (CHAPs) based on 361 RAD applications. Of these 38 have withdrawn their RAD applications or had their CHAP revoked by HUD. Fifty-seven have been completed, making the conversion from public housing to project-based Section 8. The 323 current projects with CHAPs propose converting 41,735 units and to raise $3.9 billion in capital funding, with Low Income Housing Tax Credit funding accounting for 35% of the total, first mortgage debt accounting for 30% of the total, and a multitude of other sources comprising the balance.
The intent of RADis to help preserve and improve low income housing by enabling PHAs to leverage Section 8 rental assistance contracts to raise private debt and equity for capital improvements. RAD has two components. The first component allows up to 60,000 units of public housing and Moderate Rehabilitation (Mod Rehab) program units to apply for permission to convert their existing federal assistance to project-based Housing Choice Vouchers (PBVs) or to Section 8 project-based rental assistance (PBRA) by September 30, 2015.
The PD&R paper, Status of HUD’s Rental Assistance Demonstration (RAD) Evaluation and Results to Date is at http://www.huduser.org/portal/RAD_Evaluation.html
HUD’ main RAD website is at http://portal.hud.gov/hudportal/HUD?src=/RAD
More information about RAD from NLIHC is at http://nlihc.org/issues/public-housing and on page 134 of the 2014 Advocates’ Guide, http://nlihc.org/sites/default/files/2014AG-134.pdf