Rental Assistance Demonstration (RAD)
RAD was created in order to give public housing authorities (PHAs) a powerful tool to preserve and improve public housing properties and address the $26 billion dollar nationwide backlog of deferred maintenance. RAD also 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.
Five Things You Should Know About Public Housing Conversions
- RAD allows public housing agencies to leverage public and private debt and equity in order to reinvest in the public housing stock. This is critical given the backlog of public housing capital needs - estimated at over $35 billion.
- In RAD, units move to a Section 8 platform with a long-term contract that, by law, must be renewed in perpetuity. A Use Agreement is also recorded under RAD further enforcing HUD’s long-term interest. This ensures that the units remain permanently affordable to low-income households.
- Residents benefit from a right of return, a prohibition against re-screening, and robust notification and relocation rights. Residents continue to pay 30% of their adjusted income towards the rent, maintain the same basic rights as they possess in the public housing program, and gain a new option to request tenant-based assistance if they wish to subsequently move from the property.
- RAD maintains the ongoing public stewardship of the converted property through clear rules requiring ongoing ownership or control by a public or non-profit entity.
- RAD is highly cost-effective, relying on shifting existing levels of public housing funds to the Section 8 accounts as properties convert.
RAD What's New
- New Photo Essay. The McKinney Housing Authority (Texas) successfully redeveloped Merritt Homes. Using RAD, and an investment of over $30 million from debt, equity, and local funds, the PHA replaced 150 homes with new deeply affordable housing in a community that has experienced steady economic growth since 2012, including a 400% population increase. (June 5, 2023)
- New website for Post-Conversion RAD PBRA. The website provides useful resources to PHAs and owners that are in the process or have recently converted public housing, Section 8 Moderate Rehabilitation, Rent Supplement, Rental Assistance Payment, and Section 202 PRAC assistance to Project Based Rental Assistance (PBRA). For RAD conversions to Project-Based Vouchers (PBV), please refer to HUD’s RAD PBV site. (May 2023)
- RAD Closings Press Releases from HUD News:
- HUD Closes Rental Assistance Demonstration Transaction in South San Francisco, CA, to Preserve 40 Affordable Rental Homes for Seniors (January 30, 2023)
- HUD Closes Rental Assistance Demonstration in New Haven, CT as a Step in Plan to Preserve 110 Affordable Rental Homes (January 11, 2023)
- HUD Closes Rental Assistance Demonstration Conversion in Albany, NY to Facilitate Creation and Rehabilitation of 88 Affordable Rental Homes. (January 9, 2023)
- HUD Closes Rental Assistance Demonstration Conversion in Boston, MA, to Preserve 445 Affordable Rental Homes (January 6, 2023)
RAD More Information
- Want to know more about how RAD preserves affordable housing? Read our 2-pager, "Rental Assistance Demonstration: An Overview,” on how the RAD program works.
- Residents, want to know more about RAD? Our web page, "What is RAD?" provides a glimpse of helpful information.
- RAD for PRAC training videos are available. For more information visit our web page.
- Looking for a Notice, Quick-Reference Guide, or another RAD Tool? Visit our RAD Statutes, Notices, Regulations & Tools web page for more information.
- RAD data is available to the public. Visit the RAD Resource Desk and click on “Data and Resources.”
- RAD Photo Essays documents a series of resident experience for properties that go through a RAD conversion.
- The RADBlast!, an electronic communication sent to subscribers of our mailing list is now available online.
- Contact us at rad@hud.gov for information about RAD for Public Housing and at rad2@hud.gov for information about RAD for Multifamily Housing.