Rental Assistance Demonstration
The Department of Housing & Urban Development’s (HUD) Rental Assistance Demonstration (RAD) allows proven financing tools to be applied to at-risk public and assisted housing and has two components:
- The First Component allows housing developments funded under the public housing program to convert their assistance to long-term, project-based Section 8 rental assistance contracts. Under this component of RAD, public housing agencies (PHAs) may choose between two forms of Section 8 Housing Assistance Payment (HAP) Contracts: project-based vouchers (PBVs) or project-based rental assistance (PBRA). As of 2017, the 2015 Appropriations Act authorizes up to 185,000 units to convert assistance under this component.
- The Second Component allows owners of housing developments funded under the Rent Supplement (Rent Supp), Rental Assistance Payment (RAP), and Mod Rehab programs to convert tenant protection vouchers (TPVs) to PBVs or PBRA upon contract expiration or termination.
RAD is a central part of the Department's rental housing preservation strategy, which works to preserve the nation’s stock of deeply affordable rental housing, promote efficiency within and among HUD programs, and build strong, stable communities.
For more information on HUD’s Demonstration program, visit the Rental Assistance Demonstration website.
CHICAGO HOUSING AUTHORITY AND RAD
FIRST Component (RAD1)
CHA is the nation’s leading Public Housing Authority for the Rental Assistance Demonstration (RAD) program, having applied in 2013 for the most number of units approved under the current 185,000 cap. HUD approved CHA’s application in June 2015 to utilize RAD for 10,937 units over a multi-year period. Since this time, CHA has been working to transition approximately half of its public housing portfolio to project-based voucher HAP contracts under the RAD program.
CHA’s primary strategy for RAD is to stabilize the financial performance its properties and leverage the program as a mechanism to rehabilitate and reinvest in existing buildings. In addition, where applicable, RAD is being used to support new affordable and mixed-income housing developments.
Please email RAD@thecha.org if you have any questions.
Second Component (RAD2)
If you are the owner of a housing development funded under the Rent Supplement (Rent Supp), Rental Assistance Payment (RAP), and Mod Rehab programs, your development may apply to convert to a project-based voucher Housing Assistance Program (HAP) contract administered by the Chicago Housing Authority.
RAD2 provides a 20-year HAP contract with rents that can be adjusted annually based on the local market.
If you are interested in learning more about conversions under the Second Component of HUD’s Rental Assistance Demonstration, please email: DevelopmentFinancing@cha.org.
Links and Downloadable Information
RAD & MTW IN CHICAGO: Creating Greater Impact with Hud Demonstration Programs
RAD Plan Update and List of Properties
Board Resolution Policies for Rental Assistance Demonstration Properties
FY 2015 RAD Residential Lease
CHA Grievance Procedure for RAD Program