After asking for feedback earlier this year on the key challenges related to the Rental Assistance Demonstration (RAD), HUD recently announced two important clarifications for program participants. RAD was established in 2011 as an affordable housing preservation strategy for public housing authorities (PHAs) because affordability cannot be met by government programs alone. The program allows PHAs to convert public housing properties at risk of obsolescence or underfunding into project-based vouchers or rental assistance contracts under the Section 8 program.
Specifically, HUD’s first clarification addresses the ability of owners to choose the date of enforcement for their Housing Assistance Program contract as the first day of either of the two months following a RAD closing. The second provides a conversion guide designed to help owners budget for transition year funding, which also includes a detailed description of required elements for conversion approval.
NMHC and NAA support RAD and other creative ways for policymakers to engage the private sector to advance the shared goal of delivering safe, affordable housing. When units are re-designated from public housing to Section 8 housing, the PHAs are able to leverage private capital to address capital needs. This enables housing authorities to work with private sector developers and managers to preserve their affordable housing stock.
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