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A program of the Department of Housing and Urban Development (HUD), Rental Assistance Demonstration, or RAD, allows public housing authorities (PHAs) the opportunity to preserve and improve public housing properties. RAD converts traditional public housing properties to the Section 8 program.
RAD allows PHAs like the Housing Authority of the City of Tulsa (THA) to leverage public and private debt and equity in order to reinvest in public housing stock. This is a critical component and benefit of the program as the existing backlog of capital needs across PHAs exceeds $35 billion.
Through RAD public housing is converted to Section 8, resulting in a long-term contract that must be renewed in perpetuity, in addition to a Use Agreement recorded under RAD. These measures ensure that the units undergoing RAD conversion remain permanently affordable to low-income households.
Residents of properties converting to RAD have a right to return, a prohibition against re-screening and significant notification and relocation rights mandated by HUD. Residents continue to pay 30% of their adjusted income towards rent while gaining the option to request tenant-based assistance (versus unit-based assistance) if they choose to move from the RAD property.
Residents maintain the same basic rights under RAD that they do under the traditional public housing model. Ongoing public stewardship of the property is also a requirement of RAD.
RAD is also a very cost-effective model, enabling PHAs to reasonably and responsibly make needed updates to public housing properties to better serve residents.
THA is experiencing the same backlog of needed improvements to its housing stock as other PHAs across the U.S. RAD will allow THA to take advantage of new funding streams to renovate its aging housing, ultimately creating a more appealing environment for residents and those in the surrounding community.
Some THA properties date back to the 1950s and haven’t experienced significant rehabilitation and remodeling since their inception. RAD will allow THA to revitalize these properties and enhance the quality of life for its residents as a result.
THA will convert all of its twelve public housing properties through the RAD program over the next several years. Some conversions will be transactional only in scope, while others will involve demolition and remodeling.
The first properties to undergo conversion will be Sandy Park Apartments and Apache Manor Apartments, with work on these properties set to begin by the end of 2019. Upgrades to these two properties alone are estimated to cost up to $30 million and will include new amenities like stainless steel appliances and enhanced property grounds for improved curb appeal.
RAD conversion includes a number of benefits for residents, including:
Before THA can embark on RAD conversion, we are required by HUD to notify all residents in the community proposed for RAD conversion about our plans; we are also required to conduct at least two meetings with residents at these properties. Please watch for information from your property manager or social service coordinator on when your property meetings are scheduled; these meetings offer a great opportunity to learn more and to ask any questions you may have.
For more RAD info for residents, click here.