In 2014, the Philadelphia Housing Authority (PHA) received
approval from the United States Department of Housing and Urban
Development (HUD) to convert a portion of its public housing
properties to project-based assistance under the Rental Assistance
Demonstration (RAD) program. RAD offers PHA flexibility to preserve
affordable housing, leverage new resources to address capital needs
and provide a more stable and reliable funding source in the face
of continued federal cutbacks to the public housing program.
What is the Rental Assistance Demonstration (RAD)
program?
RAD is a HUD demonstration program through which public housing
units can be converted to long-term project based assistance.
RAD does not provide any new HUD funds; rather, it combines public
housing operating and capital subsidy into payments under a
long-term RAD Section 8 Project-Based Housing Assistance Payment
(HAP) contract. For more information on RAD, visit HUD's Rental Assistance
Demonstration website.
What are the benefits of converting public housing to
the RAD program?
PHA estimates that upwards of $1 billion in new funding is
needed to ensure the long-term preservation and viability of
existing public housing developments. While no new HUD funds are
being made available, converting public housing to the RAD Section
8 Project-Based subsidy program enables PHA to secure other,
non-HUD financial resources to address the large backlog of
deferred maintenance and other capital needs. RAD conversion
allows PHA to leverage funds that are not available in the
traditional public housing program, while ensuring the protection
of tenants' rights and preserving long-term affordability. With
these funds, PHA plans to renovate and restore old housing stock,
keeping them viable and affordable.
RAD also allows PHA to expand the supply of affordable housing
through "transfer of assistance" from vacant scattered site public
housing units. Through RAD conversion, PHA is able to
transfer assistance from these vacant units to new affordable
housing units developed by PHA and qualified development
partners.
How will PHA ensure that public housing converted under RAD will
continue to be available to low-income households?
As part of the conversion process, HUD requires that each
housing development have a RAD use agreement, long-term ground
lease, deed restrictions and other recorded restrictions to ensure
that the housing continues to serve low-income families, seniors
and people with disabilities.
How will RAD impact PHA's current public housing
residents?
Ensuring the long-term preservation of affordable, quality
housing for current and future residents is PHA's primary goal
under RAD. Residents of existing PHA developments that are
converted under the RAD program will have an absolute right to
return to their development following conversion, provided that
they continue to remain in good standing with their current lease
obligations. Most residents will see improvements made to their
developments. PHA is committed to maintaining substantially
the same operational rules, rent structure and tenant rights that
are in place now. Residents should feel very little day-to-day
impact in how PHA manages its properties.
RAD residents will become participants in the Housing Choice
Voucher (PHA) program, and subject to the policies described in
PHA's HCV Administrative Plan. A key benefit of RAD is
"Choice Mobility", which ensures that residents who wish to move
will be given a preference for a tenant-based voucher after the
initial year of occupancy.
Under RAD, residents have the right to form resident
organizations.
Will current residents have to move because of
RAD?
Current public housing residents have an absolute right to
continue to live at the development following conversion to RAD,
provided that they remain in good standing with all lease
obligations. Some, but not all, households may be relocated
temporarily by PHA to complete major construction work. In
those cases, PHA will provide relocation benefits and support to
minimize any disruption.
How will RAD residents be impacted by Low Income Housing
Tax Credits?
Some RAD developments will receive funding through the Low
Income Housing Tax Credit (LIHTC). When LIHTC is used to
finance construction, the development becomes subject to LIHTC
rules, which requires an annual income certification and has
additional unit inspection requirements. Some households may
experience rent increases as a result of RAD conversion. However,
increases may be phased in over a period of years. Any household
whose rent may increase will be made aware prior to conversion.
How will RAD impact new applicants and those currently
on PHA's waitlists?
If the development has a pre-existing site-based public housing
waiting list, applicants on the list will be transferred to the new
site-based list.
RAD Transfer of Assistance Projects (TOA)
Transfer of Assistance involves the transfer of subsidy from
long term vacant and non-viable scattered sites units in order to
subsidize new affordable housing.
So far:
Subsidies from 820 units were transferred to 17
developments.
Subsidies from 191 units pending closing will be transferred to 5
developments
Transfer of subsidies from up to 38 more units are in the planning
stages.
RAD Transfer of Assistance - Developments Closed to
Date
For information on how to apply to these developments, click on
the Organization Name in the table here to
go to the organization's homepage.