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5 IMPORTANT THINGS ABOUT RAD

5 Things about RAD Public Housing Conversions:

  • RAD enables public housing agencies to leverage public and private equity and debt in order to re-invest in the public housing stock. Therefore, this is critical given the 25.6 billion dollar accumulation of public housing capital improvements in the market.
  • In the RAD program, units move to a Section 8 platform with a long-term contract which, by law, must be renewed. This assures that the units remain permanently affordable to the low-income household community.
  • Residents of the community continue to pay 30% of their income towards the rent and they keep the same basic rights as in the public housing program.
  • RAD preserves the public management of the converted property through fine rules on continuing ownership and use of such properties.
  • RAD program is cost-neutral and does not raise HUD’s budget. This program transfers units to the Section 8 program from the Public Housing program so that providers can leverage the private capital markets to make capital advancements.

Take a look at our RAD Financing options.

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What is an FHA Loan?

The FHA was created by…the National Housing Act of 1934, during the Great Depression. During that time, foreclosures and loan defaults were common because of the economic crisis that the country was facing. The FHA provided mortgage insurance on loans originated by private lenders, backing them financially in case borrowers defaulted or were not able to honor the terms and conditions that had been agreed upon.

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