A letter dated February 20 from HUD Secretary Shaun Donovan encourages public housing agencies (PHAs) to continue to submit applications for Rental Assistance Demonstration (RAD) conversions even though the FY12 appropriations act authorizing RAD set a cap of 60,000 public housing units that could be converted to long-term project-based Section 8 rental assistance. Congress did not act on HUD’s request to expand RAD by 90,000 units in the FY14 appropriations act.
As of December 31, 2013, nearly 58,000 units had received preliminary approval and another 118,000 units are covered in applications submitted before the end of the year (see Memo, 1/31). The letter explains that the 116,000 units exceeding the 60,000 cap will be reviewed by HUD for contingent approval in the event that Congress authorizes RAD expansion.
Secretary Donovan encourages PHAs that have considered applying for RAD conversion to do so because HUD will review new applications and provide conditional approval for those considered viable.
The letter announces that HUD will use the FY14 Public Housing Capital Fund and Operating Fund formula levels to set RAD rents for all applications above the 60,000 unit cap already at HUD or received in 2014. HUD states that this rent level will be nearly equivalent to the FY12 rent levels available to applications within the 60,000 unit cap.
Secretary Donovan’s letter is at: http://bit.ly/MokKOV
HUD’s RAD website is http://portal.hud.gov/hudportal/HUD?src=/RAD.
NLIHC’s RAD summary is at http://nlihc.org/sites/default/files/RAD_Key_Features_Jan14.pdf.