RAD Fact Sheet
RENTAL ASSISTANCE DEMONSTRATION (RAD)
RAD was created in order to give public housing authorities (PHAs) a powerful tool to preserve and improve public housing properties and address the over $35 billion-dollar nationwide backlog of deferred maintenance.
BY THE NUMBERS
Nationally, Public Housing Authorities have converted 1,361 projects covering 176,060 housing units under the RAD program. This consists of 147,216 RAD Section 8 units, 13,381 non-RAD Section 8 units, 11,832 Low Income Housing Tax Credit units and 3,631 market units. That means approximately 404,710 people have had their assisted housing secured and preserved for the long-term on the Section 8 platform. Under RAD, the physical condition of these properties will be improved and capital needs for the next 20 years will be accounted for, ensuring that these homes remain affordable in perpetuity.
These transactions have secured $11,554,781,466 in construction investment, equating to $65,630 per unit built or rehabbed. That means that through RAD, 219,545 direct and indirect jobs have been created in the United States.
Based on closed transactions, the most active PHAs in RAD are:
|Housing Authority||Closed Transactions||Closed Units|
|New York City Housing Authority (New York)||7||8,103|
|Chicago Housing Authority (Illinois)||33||6,050|
|Housing Authority of the City of El Paso (Texas)||39||5,759|
|Housing Authority of the City & County of San Francisco (California)||40||5,578|
|Metropolitan Development & Housing Agency (Tennessee)||21||5,493|
|Housing Authority of the City of Charlotte (North Carolina)||49||4,143|
|Housing Authority of Baltimore City (Maryland)||23||3,907|
|Housing Authority of the City of Fort Worth, Texas, D/B/A Fort Worth Housing Solutions (Texas)||25||3,881|
|Public Housing Agency of the City of St Paul (Minnesota)||8||3,836|
|Knoxville's Community Development Corp. (Tennessee)||21||2,799|
584 projects covering 62,881 units are currently in the RAD pipeline.
- RAD allows public housing agencies to leverage public and private debt and equity in order to reinvest in the public housing stock. This is critical given the backlog of public housing capital needs - estimated at over $35 billion.
- In RAD, units move to a Section 8 platform with a long-term contract that, by law, must be renewed in perpetuity. A Use Agreement is also recorded under RAD, further enforcing HUD's long-term interest. This ensures that the units remain permanently affordable to low-income households.
- Residents benefit from a right of return, a prohibition against re-screening, and robust notification and relocation rights. Residents continue to pay 30% of their adjusted income towards the rent and they maintain the same basic rights as they possess in the public housing program and gain a new option to request tenant-based assistance if they wish to subsequently move from the property.
- RAD maintains the ongoing public stewardship of the converted property through clear rules requiring ongoing ownership or control by a public or non-profit entity.
- RAD is highly cost-effective, relying on shifting existing levels of public housing funds to the Section 8 accounts as properties convert.
Regional Fact Sheet
Recap has developed a summary report, by region, for the RAD for PHA program. These reports provide information about the RAD program overall and region specific information on units converted and construction spending.
To create the report for RAD transactions in a particular HUD region, select the region below:
RAD Construction Investment
Construction Investment in Closed Transactions
Units Participating in the RAD Program
To download data for each component, click the slice on the chart.
Leveraging Funds in RAD Conversions
RAD Across America