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RAD in the 2014 Budget

In Fiscal Year 2014, HUD will continue efforts to put our nation’s public and assisted housing units on solid financial footing through the Rental Assistance Demonstration (RAD).

With a public housing stock (1.15 million units) burdened by an estimated $26 billion backlog and Moderate Rehabilitation (Mod Rehab) (23,000 units), Rent Supplement (Rent Supp) (9,500 units), and Rental Assistance Payment (RAP) (11,300 units) contracts with limited or no option to renew their assistance, authorization for RAD in the HUD’s 2012 Appropriations Act has proven to be an effective and timely solution to preserve and improve this at-risk affordable housing. RAD allows:



  1. Public Housing and Mod Rehab properties to convert to long-term project-base Section 8 rental assistance contracts (capped at 60,000 units of converted assistance); and
  2. Rent Supp, RAP, and Mod Rehab properties, upon contract expiration or termination prior to September 30, 2013, to convert tenant protection vouchers (TPVs) to project-based vouchers (PBVs).

Unlike their current forms of assistance, these RAD contracts offer a rental subsidy platform that allows PHAs and owners to leverage Federal appropriations with other private and public capital to finance much needed rehabilitation and preserve the assets as affordable housing. Meanwhile, properties that convert assistance are subject to long-term rental assistance contracts and use restrictions, while residents retain strong rights and gain the choice to move with tenant-based rental assistance within a reasonable time after conversion.

119 public housing and Mod Rehab projects, totaling 12,500 units, have been awarded a Commitment to enter into a Housing Assistance Payment contract (CHAP). PHAs and owners proposed to address over $500 million in capital repairs, which would create over 9,000 jobs, and meet a number of local objectives, including:
  • Modernization and stabilization of aging family and elderly properties
  • Substantial rehab of deteriorated properties
  • Thinning densities and mixing incomes by transferring assistance
  • Demolition and replacement of severely distressed properties
  • Streamlining program administration 

HUD has already approved 27 out of the 33 Rent Supp, RAP, and Mod Rehab projects that have been submitted and that have contracts expiring prior to Sept 30, 2013.

HUD has received letters of interest from another 65 projects with contract expirations beyond this date.

In Fiscal Year 2014, HUD is requesting:

  • $10 million in RAD funding for targeted RAD projects associated with the Administration’s Ladders of Opportunity and Promise Zones initiatives. These funds would supplement current funding (i.e., RAD contract rents) only as needed to meet project needs and leverage additional private debt or equity to facilitate key Departmental priorities, including Choice Neighborhoods.
  • An extension of the authority to preserve Rent Supp, RAP, and Mod Rehab projects with expiring contracts by continuing to convert tenant protection vouchers issued to tenants upon contract expiration or termination to project-based vouchers until Sept 30, 2015.
  • An increase in the 60,000 unit cap to 150,000 units, the exclusion of Mod Rehab properties from the cap, and the inclusion of McKinney SRO Mod Rehab projects under RAD. These modifications will allow for a greater portion of the Public Housing and Mod Rehab stock to convert and be preserved at no additional cost to the federal government.

For more information about HUD’s 2014 Budget request, click here.