September 27, 2016
In Case You Missed It: A Look at Recent National Housing Policy News
HUD recently released an independently conducted report evaluating its Rental Assistance Demonstration (RAD) program, which finds that by October 2015, Public Housing Authorities (PHA) participating in the program had generated $2.5 billion in investment to preserve and rehabilitate public housing properties. RAD allows PHAs to leverage public and private sources of financing by converting public housing to project-based Section 8 contracts. Another component of RAD allows Rent Supplement, Rental Assistance Payment, and Mod Rehab properties to convert to project-based Section 8 assistance. The report finds that nearly 40 percent of the financing for RAD projects, the largest source of financing at approximately $977 million, has come from the Housing Credit, including $503 million from 4 percent Credits and $474 million from 9 percent Credits. Approximately $686 million in RAD financing has come from various soft money sources, including HOME, the Federal Home Loan Banks' Affordable Housing Program, grants, deferred development fees, or other sources of gap financing. The report attributes another $564 million in investment to mortgage financing and other third-party debt. The remainder of the financing for RAD—approximately $250 million, or 10 percent of total financing—has come from PHAs' resources.