Rental Assistance Demonstration $15 Billion Milestone
The U.S Department of HUD's Office of Multifamily Housing Programs announced that they are marking an important milestone. As of October 2022, Public Housing Agencies (PHAs) and their partners have now used Rental Assistance Demonstration (RAD) to generate over $15 billion for construction investments to improve and replace public housing properties since the program's inception. Over 185,000 homes have been preserved so they remain affordable to low-income families, seniors, and persons with disabilities for generations to come. RAD has unlocked over $15 in funding for every $1 of public housing appropriated funds. In the last couple of years, we have seen the conversions having a greater impact than ever, with a per home investment of $144,000. Meanwhile, PHAs continue to use RAD to replace deep rental assistance in neighborhoods of opportunity.
From its inception in 2013 through September 30, 2022, the program has helped PHAs across the country to:
- Secure and preserve housing under Section 8 for approximately 468,000 individuals.
- Convert 1,533 public housing properties, covering approximately 185,000 affordable rental homes, to the Section 8 platform, and facilitate the creation of 15,000 Low-Income Housing Tax Credit units.
- Increase the per-unit rehabilitation spending by PHAs within RAD, averaging $144,000 per home in 2022 versus $55,000 per home on average in the first five years of the Demonstration.
- Finance $6 billion of construction at properties with greater capital needs by utilizing the innovative RAD/Section 18 blend to modernize and preserve 30,647 public housing units across 142 properties since 2018.
- Leverage 140 transfers of assistance to help PHAs relocate 8,300 affordable homes to neighborhoods where the poverty rate is on average 24 percent lower than the rate at the original site. See additional RAD data here.
See the press release and the flyer for additional information
>> Click here to view the orginal notice from the Office of Multifamily Housing Programs