Rental Assistance Demonstration Overview

Public housing faces risks due to underfunding, leading to the loss of units annually. The Rental Assistance Demonstration (RAD) program addresses these challenges by converting units to long-term Section 8 contracts, attracting private capital for rehabilitation. With components covering public housing and legacy assisted housing, RAD has made significant progress in unit conversions and investments. The presentation delves into the structure, status, and opportunities within RAD, showcasing the impact on TRACS and demonstrating the potential for sustainable housing solutions.

• Public Housing
• Rental Assistance
• RAD Program
• Housing Preservation
• Legacy Housing

anvi_991 Follow

Uploaded on Feb 26, 2025 | 0 Views

Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.

Presentation Transcript

1. Rental Assistance Demonstration Presentation to TRACS Industry Working Group 2/8/16

2. Background on RAD The Problem Public housing at risk due to deferred capital repairs caused by a long history of underfunding of the program 10,000-15,000 public housing units lost each year Current needs exceed $25.6B across the portfolio (+$23k per unit) Section 9 platform creates barriers to accessing private capital Multifamily legacy assisted housing properties also at risk A Tool to Start the Solution RAD created in FY12 Appropriations, expanded in FY2015 Preserves at-risk public housing and at-risk legacy properties by targeting the risk issues through conversion to long-term Section 8 Housing Assistance Payment (HAP) contracts 2

3. RAD Program Structure Rental Assistance Payment Rent Supplement Public Housing McKinney Vento Single Room Occupancy (SRO) Section 8 Moderate Rehabilitation RAD for Public Housing 1stComponent 185,000 Unit Cap RAD for Legacy Assisted Housing 2nd Component No-Cap PBRA PBV PBRA PBV Program rules set forth in PIH Notice 2012-32 Rev 3 3

4. Status of RAD 1st Component (Public Housing) 57,816 units (527 projects) have completed conversion 26,392 units (230 projects) converted to PBRA $3.85 Billion new investment for rehabilitation/construction Initial awards made up to the 185,000 unit statutory cap Waiting list of 18,000 units has formed RAD Evaluation Interim Report released in Fall 2016 Proof of concept based on closings as of October, 2015. RAD transactions demonstrate a leverage ratio of $9 for every $1 of public housing funds invested 4

5. Legacy Program Conversions Status Conversions & Outstanding Pipeline Rent Supp/RAP Transactions: 62 properties remaining in portfolio 45 active transactions in the RAD 2 Pipeline 49 properties have contracts that expire in 2017 We hope to sunset the Rent Supp & RAP programs in the next few years Mod Rehab Transactions: 9 active transactions in the RAD 2 Pipeline 3 applications in process Substantial opportunities for Mod Rehab properties NOTE: Data derived from RAD 2 closed transactions only through January 5, 2017. Legacy Program Conversions 5

6. Existing RAD 1st Component Provisions Impacting TRACS While 50059 must be submitted starting on the HAP Effective date, funding for the balance of the calendar year continues to flow through public housing appropriations. During this period voucher should be adjusted to $0 Normal voucher processing begins January for the calendar year following conversion Rehab Assistance Payments units that are vacant as a result of initial work following the conversion are eligible for HAP subsidy Tenants carry over same annual recertification date 6

7. Unique RAD 2nd Component Provisions Impacting TRACS 90 day grace period for tenant certifications 7

8. RAD Notice Revision 3 (PIH 2012-32/Housing 2017-03 Rev 3) This revision builds on the program s success and lessons learned in order to ensure that the program s pace continues and more properties can be preserved and transformed. First Component Simplify certain program requirements Create new flexibilities to make more conversions feasible Strengthen tenant rights Second Component Improve rent-setting options *** Please note changes in Revision 3 of the RAD Notice only impact properties closed after January 19, 2017*** 8

9. TRACS-related Modifications in Revision 3 of the RAD Notice Tenant Rent Phase-In for Public Housing Conversions Pre-existing Notice provision included provision where, in the event that tenant rents will increase to 30% of AGI as a result of conversion, rents can be phased in. Rev 3: clarifies that eligibility must be determined at Initial Certification corrects the phase-in formula so that the increases are more evenly distributed across the years. 9

10. TRACS-related Modifications in Revision 3 of the RAD Notice Gross rent/TTP Pre-existing Notice provision required tenant to pay 30% of a adjusted gross income when TTP > Gross Rents. Rev 3: provides exception for LIHTC max rent (i.e. when TTP > Gross rent, tenant will pay lesser of 30% of adjusted income or LIHTC max rent and Clarifies that such households may be required to be processed in TRACS when the system can accommodate these submissions 10

11. Additional Resources RAD Notice: PIH 2012-32 / H 2017-03 Rev 3 RAD PBRA Quick Reference Guide (www.hud.gov/rad) 11

12. Thank you 12