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.