HUD announces that affordable housing preservation through RAD surpassed $15 billion
The U.S. Department of Housing and Urban Development's (HUD) Office of Multifamily Housing Programs announced that construction investment for affordable housing preservation has surpassed $15 billion.
OKLAHOMA (KFOR) - The U.S. Department of Housing and Urban Development's (HUD) Office of Multifamily Housing Programs announced that construction investment for affordable housing preservation has surpassed $15 billion.
The investment for affordable housing preservation is through the Rental Assistance Demonstration (RAD) program.
“$15 billion is more than a just a number – it represents a substantial long-term investment in the homes and lives of people,” said Deputy Assistant Secretary for Multifamily Housing Programs Ethan Handelman. “Innovative use of RAD by Public Housing Authorities (PHA) working with public and private sector partners, residents, and HUD has leveraged critical capital investments to help turn around the nation’s aging public housing stock.”
Over the past nine years, the RAD program has given PHAs the opportunity to recapitalize new public and private investment into affordable rental housing while keeping the affordability of rental homes in perpetuity. RAD has acquired over $15 in funding for every $1 of public housing appropriated funds.
Since RAD's original inception in 2013, the program has helped PHAs across the U.S. to:
- Secure and preserve housing under Section 8 for approximately 468,000 individuals.
- Convert 1,533 public housing properties, covering approximately 185,000 affordable rental homes, to the Section 8 platform, and facilitate the creation of 15,000 Low-Income Housing Tax Credit units.
- Increase the per-unit rehabilitation spending by PHAs within RAD, averaging $144,000 per home in 2022 versus $55,000 per home on average in the first five years of the Demonstration.
- Finance $6 billion of construction at properties with greater capital needs by utilizing the innovative RAD/Section 18 blend to modernize and preserve 30,647 public housing units across 142 properties since 2018.
- Leverage 140 transfers of assistance to help PHAs relocate 8,300 affordable homes to neighborhoods where the poverty rate is on average 24 percent lower than the rate at the original site. See additional RAD data here.