Rental Assistance Demonstration (RAD)

What is RAD?

RAD was created to give public housing authorities (PHAs) a powerful tool to preserve and improve public housing properties and address the huge nationwide backlog of deferred maintenance. RAD also created new preservation opportunities based on long-term assistance contracts that facilitate the financing of improvements, to assist owners of properties participating in seven other HUD programs, three of which are currently active (Section 8 Moderate Rehabilitation, Moderate Rehabilitation Single Room Occupancy, and Section 202 Project Rental Assistance Contracts). Properties assisted through the Section 811 Project Rental Assistance Contracts and Senior Preservation Rental Assistance Contracts will be able to convert through RAD upon publication of implementing guidance. Properties previously assisted through the Rent Supplement and Rental Assistance Payments programs have all converted, so those programs no longer exist.

Five Things You Should Know About Public Housing Conversions

1. RAD allows PHAs to leverage public and private debt and equity in order to reinvest in the public housing stock. The backlog of public housing capital needs is estimated to be $115 billion when analyzing the approximately 300 RAD transactions that closed over the last three years.
2. 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.
3. 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, 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.
4. 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.
5. RAD is highly cost-effective, relying on shifting existing levels of public housing funds to the Section 8 accounts as properties convert.

RAD Highlights

• New RAD Press Release! HUD Closes $14.8 Million Transaction to Build New Affordable Rental Homes in Chapel Hill, NC. The Transaction supports the construction of 54 new affordable homes. For more information read the press release. To read press on other RAD transactions, visit the web page. (6/7/2024)
• RAD Photo Essay! The Housing Authority of the City of San Buenaventura (HACSB) turned to RAD and partnered with BRIDGE Housing Corporation to leverage existing resources to create a development that serves the health and well-being of its entire community. For more information view the essay.
• PRACtical RAD video on the Closing Process that provides an overview of the RAD closing process for PBRA conversions. The PRACtical RAD series provides PRACtical guidance to owners of Section 202 properties seeking to convert their Project Rental Assistance Contract (PRAC) to a Section 8 Housing Assistance Payments (HAP) contract through RAD. To view additional videos in this series visit the RAD for Section 202 PRAC web page.
• Have you checked out the RAD Residents pages? We have resources and tools for residents of RAD Public Housing, Moderate Rehabilitation and Section 202 Project Rental Assistance Contracts (PRACs) properties including a video to get an overall understanding of the program and other resources. Visit us today at "What is RAD?"

RAD More Information

• Want to know more about how RAD preserves affordable housing? Read our 2-pager, "Rental Assistance Demonstration: An Overview,” on how the RAD program works.
• For guidance related to Multifamily policies to owners (including Public Housing Agencies) who will be or have previously converted their projects to Section 8 Project-Based Rental Assistance (PBRA) authorized under RAD, visit the RAD PBRA Post Closing web page.
• RAD for PRAC training videos are available. For more information visit our web page.
• Looking for a Notice, Quick-Reference Guide, or another RAD Tool? Visit our RAD Statutes, Notices, Regulations & Tools web page for more information.
• RAD data is available to the public. Visit the RAD Resource Desk and click on “Data and Resources.”
• RAD Photo Essays documents a series of resident experience for properties that go through a RAD conversion.
• The RADBlast!, an electronic communication sent to subscribers of our mailing list is now available online.
• Contact us: RAD for Public Housing (rad@hud.gov) or RAD for Multifamily Housing (rad2@hud.gov).

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