HUD Evaluates Success of RAD Program
The U.S. Department of Housing and Urban Development (HUD) today released an interim report that evaluates the success of the Rental Assistance Demonstration (RAD) program. The RAD program was approved by Congress in 2012 to allow public housing authorities to convert their properties to project-based Section 8 contracts, after which they can leverage private capital to finance property rehabilitation or replacement. Today’s report finds that by October 2015, PHAs generated $2.5 billion in new investment to preserve and improve public housing stock, leveraging $9 in capital for every $1 of public housing funds. HUD is calling for Congress to lift its cap of 185,000 public housing units that may be converted. HUD’s next RAD report will focus on how successful RAD is at improving the physical and financial conditions of the properties and how tenants are affected.