What is Rental Assistance Demonstration

The department of Housing And Urban Development (HUD) runs the Rental Assistance Demonstration Program (RAD). The main purpose of the program is to preserve affordable housing. Many Public Housing Agencies (PHAs) does not have enough money to keep public housing units across the country in good condition. There are more than 1.2 million units and they require almost $26 billion for repairs. Therefore, RAD provides assistance to PHAs to rehabilitate, stabilize or replace properties. RAD allows PHAs and owners of HUD-assisted properties to convert their units into project-based programs under section 8 Project-Based Vouchers. They provide them the opportunity to invest money in properties that are at the risk of demolition or voucher. It also gives the owners of three HUD legacy programs the opportunity to enter into long-term contracts for financial help for improvement.


Benefits Of RAD

RAD has a strong chain of lenders, owners, and stakeholders. They provide RAD with financial help that ultimately reaches PHAs and HUD-assisted housing for preserving and improving the conditions of affordable housing units. RAD creates a more certain source of funding. It also safeguards the long-term rental housing assistance for current as well as future tenants. The RAD program improves and modernizes HUD-assisted multifamily housing properties. Moreover, it stabilizes such properties by providing them solid financial help. 


Several Points To Consider Before Opting For RAD Conversion

  • RAD conversion does not affect housing assistance. Even though the housing units can use private money to make large repairs but still they will receive money from HUD. After the conversion, the converted properties are owned or controlled by public or non-profit entities. 
  • After the housing unit is converted into Project-Based Vouchers the rent contribution shall be the same as it was under public housing. Generally, the rent amount is not more than 30% of the household’s adjusted gross income. Therefore most of the residents shall not pay rent more than 30% as a result of RAD conversions.  
  • HUD requires PHAs to notify all the residents regarding the development proposal for RAD conversion. They must convey their plans and conduct at least two meetings with residents whose properties are going for the conversion. These meetings provide an opportunity for the residents to ask questions, provide comments and also express concerns. Later PHA needs to submit the comments to the HUD. 
  • PHAs can only start the conversion process after notifying the residents regarding the program. PHAs can apply to HUD to convert the units under RAD only after notifying the residents and submitting their comments.
  • For small and minute repairs the residents need not shift to different accommodations. Residents of buildings and apartments that require more extensive repairs need to shift to a temporary location for some time. Generally, the temporary location does not last for more than 12 months.


RAD program is one of the efficient ways to finance housing units that are in bad condition. This saves the properties from demolition or complete destruction and provides affordable housing to the people in need.

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