RAD Program


Rental Assistance Demonstration & Asset Repositioning Strategy

Multifamily Public Housing

The Housing Authority of the City and County of Sacramento (“Housing Authority”) is composed of 2712 public housing units throughout the City and County of Sacramento. These units are vital to providing critical housing to low and very low income residents. The housing stock is rapidly aging, the federal government has not adequately funded public housing programs over the last seventeen years, and the local demand for affordable housing continues to increase.

Sacramento will utilize the Rental Assistance Demonstration Program (“RAD”) to convert all properties with five or more units to the RAD Program. The Agency will leverage private debt and equity in conjunction with its Capital Improvement funds to address over $58 million of deferred maintenance issues.

In September 2018, the Housing Authority submitted applications to the US Department of Housing and Urban Development (HUD) to initiate conversions under RAD.  In December 2018, HUD approved the first component of the RAD conversion (RAD 1 Pilot Program) which includes 124 units in the City and County areas of the agency’s portfolio.

What is RAD?

The RAD program was initiated in 2012 to help Public Housing Authorities (PHAs) convert its properties to more viable housing programs. HUD determined that the configuration of the Public Housing program was not sustainable; resulting in a capital needs backlog in the nation’s public housing inventory of over $26 billion. RAD allows PHAs to convert public housing to long-term, Project-based Section 8 rental assistance developments.

What are the benefits of RAD Conversions?

Converting properties to RAD allows PHAs to access private debt and equity that is not permitted in traditional public housing to address immediate and long-term capital needs. RAD conversions also allow PHAs to improve resident living conditions while at the same time not increasing resident rents beyond 30% of a households’ adjusted gross income. Residents’ rights and basic public housing protections remain in place while they also have greater mobility as a result of being on the Project based Section 8 Voucher platform.

 

BEFORE RAD

AFTER RAD

Properties are typically not funded at 100% in Public HousingProperties are placed on a more stable Section 8 funding platform
In Public Housing, PHAs cannot borrow money to perform necessary repairsPHAs and owners can more easily borrow money and perform rehabilitation work
The funding fails to keep up with the deteriorating living conditions of residentsThe living conditions of residents are improved
Residents cannot choose to move without losing housing assistanceResidents may receive a tenant-based voucher, or similar assistance, and move after 1 or 2 years based on the program selected by the PHA

How will RAD impact Housing Authority current residents?   

The Housing Authority is committed to keeping the same basic operational rules, rent structure and tenant rights that are in place currently.  Resident should feel very little change in the day to day operations of how the sites are managed.

Once sites are converted, residents will sign a new lease preserving current tenant rights and protections after the RAD conversion.  The Housing Authority, in accordance with HUD program guidelines, will ensure long-term affordability and stability of the properties.

All properties under RAD will be partly financed with Tax Credits to complete needed repairs.  As such, all properties will be subject to Low Income Housing Tax Credit policies.

Will current residents have to move because of RAD?     

No resident will lose their home because of a RAD conversion.  Some households, however, will be relocated temporarily to complete construction work in their units. Each proposed construction requires resident participation in the process including a resident Relocation Plan that spells out the details of the temporary moves.  The Relocation Plan will also include Housing Authority responsibilities to each household and the residents right to return to the property upon completion of the work.


RAD Resources

RAD Flyer

RAD Presentation

For more information, please call SHRA at 916-449-6302.  Residents can also obtain more information on the HUD RAD website at www.hud.gov/rad.


Frequently Asked Questions about RAD Conversions

Why are you converting to RAD?

Will the RAD conversion affect my housing?

Will the RAD conversion affect resident’s rent?

How can residents participate in the RAD Planning process?

Will RAD increase residents ability to choose where they live?

Will the RAD conversion make public housing more difficult for residents?

What if residents need accommodations to participate?

Will residents have to move if their apartment is being rehabbed?

What changes will residents see in their lease renewal processes?

Will RAD affect resident’s rights and participation at the sites?

Will residents still be able to participate in self- sufficiency programs?


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