The Rental Assistance Demonstration (RAD) program proposes to convert selected public housing and at-risk multifamily properties to standard Section 8 contracts to address the loss of affordable housing inventory and unreliable funding for public housing capital repairs. Through RAD, properties can receive long-term project-based Section 8 rental assistance contracts of 20 years to attract private investment and preserve affordable housing. Eligible public housing and multifamily properties can receive either project-based vouchers or project-based rental assistance, and residents will maintain housing choice and tenant rights and protections.

1. FY2012:
Rental Assistance
Demonstration
Transforming Rental Assistance
Urban Land Institute Fall Meeting
October 27, 2011

2. REALITY
Increasing Affordable Housing Need—While HUD Loses
Inventory
• For every 3 new affordable housing units built in the US, 2 have
been lost over last decade
Public Housing
• Section 9 funding platform has proven unreliable and prohibits
access to private capital investment
• Capital repair needs in excess of $25.6B across portfolio
Multi-Family “Orphans” – Section 8 Moderate Rehab; Rent
Supplement (Rent Supp); Rental Assistance Payment (RAP)
• No option to renew or cannot renew on terms needed to attract
capital
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October 27, 2011

3. RESPONSE
FY12 Rental Assistance Demonstration (RAD)
• Proposes to convert selected Public Housing and at-risk assisted
Multifamily “Orphans” to standard Section 8 Housing Assistance
Payment (HAP) Contracts
 Part of HUD’s larger strategy for rental housing preservation
 Follows from Transforming Rental Assistance (TRA) concepts
 FY12 Budget Request: $200M for incremental costs of conversion
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October 27, 2011

4. RAD FY12
Basics
• Offers two Section 8 options to eligible inventories
 Project-Based Vouchers (PBVs)
 Project-Based Rental Assistance (PBRA)
• PH ownership: converting properties remain under ownership
or control of PHA
 PHA Can choose to relinquish ownership or control to
 Another capable public or nonprofit entity
 For profit limited partnership formed for selling applicable tax
credits
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October 27, 2011

5. RAD FY12
Basics cont’d
• Orphan properties ownership not affected
• PH contracts and use agreements
 Standard Section 8 PBV or PBRA contracts and companion
use agreements
 20-year term that will be renewed and must be accepted
 Contracts and use agreements survive foreclosure,
bankruptcy, enforcement termination
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October 27, 2011

6. RAD FY12
Basics cont’d
• Offer housing-choice/mobility option to residents in PH and MR
Conversions
 PBV
 PBRA
• Tenant rights, procedures, processes unchanged
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October 27, 2011