RAD Program

Multifamily Public Housing and Rental Assistance Demonstration Program (RAD)

The RAD program was initiated in 2012 to help Public Housing Authority’s convert its properties to a more sustainable program. 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 dollars. RAD allows public housing agencies (PHAs) to convert public housing and other U.S. Department of Housing and Urban Development (HUD) assisted properties to long-term, project-based Section 8 rental assistance developments. Converting the properties gives the PHAs access to private debt and equity to address immediate and long-term capital needs. RAD has two components. The first component allows the conversion of public housing and moderate rehabilitation properties to long-term, project-based Section 8 rental assistance contracts. The second component allows rent supplement, rental assistance payment, and moderate rehabilitation properties to convert tenant protection vouchers into project-based assistance at the end of the contract. A key feature of RAD is that Housing Authorities can reposition properties to be more economically sustainable without injury to the residents. Residents retain their basic protections under the public housing program and are not charged rents beyond 30% of their adjusted gross income.

Exhibit A – Property List – City 5+

Exhibit A – Property List – County 5+

Multifamily Public Housing

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 for low and very low income residents. However, the units have significant issues that affect their long term sustainability. 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 RAD program 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 $60 million dollars of deferred maintenance issues. The conversion to RAD and ability to leverage debt will allow Sacramento Housing Authority to be in closer alignment with its mission of providing decent, safe and sanitary housing for its residents.


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