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New guidance to further clarify demonstration also released today

WASHINGTON, DC – March 9, 2012 – (RealEstateRama) — Before implementing a new comprehensive tool to preserve public housing and other federally assisted housing, the U.S. Department of Housing and Urban Development (HUD) is seeking public comment beginning today on the Rental Assistance Demonstration (RAD). See Federal Register Notice. In addition to the Federal Register notice, HUD has posted guidance – PIH Notice 2012-18 (HA) – with proposed details for RAD’s implementation.

“For more than 75 years, the federal government has invested billions of dollars in the development and maintenance of public and multifamily housing, but for public housing alone there is still $25.6 billion in much-needed large scale repairs,” said HUD Assistant Secretary Sandra Henriquez. “When Congress approved this demonstration in November, it opened the door for HUD to test this new, comprehensive, critical tool to help preserve and enhance America’s affordable housing?including public housing.”

The Rental Assistance Demonstration is a central part of HUD’s rental housing preservation strategy, which works to preserve the nation’s stock of deeply affordable rental housing, promote efficiency within and among HUD guidelines, and build strong, stable communities. RAD will enable public housing agencies and multifamily housing owners to continue to make standard life-cycle improvements to their inventory and modernize or replace obsolete units to stem the loss of affordable housing. The demonstration will offer almost 60,000 public housing units and thousands more units in the Moderate Rehabilitation, Rent Supplement, and Rental Assistance Payment programs reliable, long term, project-based rental assistance contracts. These new contracts will enable owners to leverage other public and private funding – bringing over $1 billion dollars in expected private financing to help reduce the large backlog of capital repair needs. In the process, RAD will help create and support local construction jobs in communities across the country.

The purpose of RAD is to demonstrate the extent to which the conversion to long-term Section 8 rental assistance helps preserve and improve covered projects, particularly with respect to the ability of public housing agencies and multifamily owners to access private debt and equity to address long-term capital needs. RAD is also designed to test the extent to which residents take advantage of being provided greater choice in where to live after the conversion of assistance.

HUD is seeking public comment on the overall proposed implementation procedures for RAD, including eligibility criteria, ranking factors, application instructions, review and approval processes, and anticipated timelines. Upon review of comments, HUD will issue a final notice guiding RAD’s implementation. However, certain eligible properties currently assisted under the Rent Supplement and Rental Assistance Payment programs will be allowed to apply for conversion of assistance prior to the publication of the final notice. Both the proposed implementation procedures and instructions on how to submit public comments are available on the RAD website,


HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
HUD is working to
strengthen the housing market to bolster the economy and protect consumers; meet the
need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build
inclusive and sustainable communities free from discrimination; and transform the way HUD does business.
More information about HUD and its programs is available on the Internet at and
. You can also follow HUD on twitter @HUDnews, on facebook at, or sign up for news alerts on HUD’s News Listserv.

Donna White
(202) 708-0685