The Rental Assistance Demonstration (RAD) allows proven financing tools to be applied to at-risk public and assisted housing and has two components:
Secretary Shaun Donovan announces RAD implementation at the Housing Authority of Savannah in Savannah, GA.
- 1st Component - Allows Public Housing and Moderate Rehabilitation (Mod Rehab) properties to convert, under a competition limited to 60,000 units, to long-term Section 8 rental assistance contracts; and
- 2nd Component - Allows Rent Supplement (Rent Supp), Rental Assistance Payment (RAP), and Mod Rehab properties to convert tenant-based vouchers issued upon contract expiration or termination to project-based vouchers.
RAD is a central part of the Department's rental housing preservation strategy, which works to preserve the nation's stock of deeply affordable rental housing, promote efficiency within and among HUD programs, and build strong, stable communities.
The Department began accepting conversion requests under the 2nd Component in March of 2012 and accepting applications under the 1st Component in September of 2012 (see summary information on the conversion requests and applications received). In the initial 30-day RAD application window for public housing properties, awardees proposed to generate over $650 million in private debt and equity investments to reduce the capital needs backlog in their properties, preserve over 12,000 public housing units, and support 9,000 local jobs in communities nationwide—all without any additional government funding.
Please check this page for the latest information on RAD. You can email the Department with questions or comments. Join the RAD mailing list.
- Improve the quality of affordable housing: PHAs and owners will be able to leverage substantial public and private funding to address critical capital needs and improve the condition of their properties.
- Preserve affordable housing: Once placed on a more stable Section 8 funding platform, converted properties will have long-term rental assistance contracts and use restrictions,
which will survive foreclosure or bankruptcy.
- Leverage private debt and equity: RAD will stretch federal funds by leveraging them with private debt and equity investments, enabling owners to make needed capital repairs.
- Enhance housing choice and mobility: PHAs and owners will offer residents the choice to
move with tenant-based vouchers after a reasonable tenure following the conversion of assistance, with a limited good-cause exemption.
- Bring Public Housing into the affordable housing mainstream: Long-term, Section 8 project-based assistance has proven to be an effective, reliable, and safe mechanism to fund affordable housing for over 30 years.
- Create jobs: Physical revitalization of assisted housing involves large-scale construction and infrastructure projects that create jobs and stimulate the local economy.
- Ensure opportunities for resident participation: Owners of converted properties must recognize resident organizations. In addition, all conversions will be subject to resident review and comment.
- Encourage green building standards: RAD encourages PHAs and owners to pursue
green building and energy efficiency by using industry-recognized standards for green
building, rehabilitation, and operation.
Application and Conversion Request Award Summary
The Department has issued initial awards and conversion authority in both the 1st and 2nd Components of RAD. See additional award and conversion information, including recent press, here.
1st Component - The Ongoing Application Period opened on October 25, 2012. The Initial Application period closed on October 24, 2012.
2nd Component - Applications for RAD’s second, non-competitive component can be submitted on a rolling basis according to the rules outlined in the Final RAD Notice.