Authorized by Congress under the FY12 HUD appropriations act, the Rental Assistance Demonstration (RAD) allows public housing agencies (PHAs) and owners of other HUD-assisted properties to convert units from their original sources of HUD financing to project-based Section 8 contracts. The primary benefit of RAD is that properties that convert under this process are no longer restricted from securing private sources of capital financing, and the owners are therefore able to address deferred maintenance issues that have caused Public Housing and other HUD rental stock to deteriorate nationwide.
Under the First Component of RAD, properties that are currently funded under the Public Housing and Section 8 Mod Rehab programs convert their assistance to long-term, project-based Section 8 contracts. Under the Second Component of RAD, the owners of projects funded under HUD's legacy programs (Rental Supplement, Rental Assistance Payment, and Moderate Rehabilitation) can convert the unit subsidy funding to Section 8 project-based vouchers.
By drawing on an established industry of lenders, owners, and stakeholders, RAD allows PHAs and owners of HUD-assisted housing to preserve and improve affordable housing units that could be subject to vouchers and demolition. RAD provides greater funding certainty for potential lenders and increased operational flexibility for PHAs and owners to serve their communities. RAD is a central part of the Department's rental housing preservation strategy which is designed to:
The HUD Exchange offers a number of resources on RAD, including resources, training, and technical assistance.
Webinars. Prerecorded webinars on RAD topics are available through the HUD Exchange Training and Events (filter by RAD).
HUD also provides various levels of RAD program information and other guidance under the following online sources: