Navigating public housing repositioning options can be complex, but the RAD program offers powerful, often underappreciated benefits. Here are five key advantages that make RAD a strategic choice for PHAs looking to improve housing quality and long-term stability.
1. Robust Resident Rights and Protections
The RAD program is renowned for its extensive resident rights that span the entire repositioning process, from required resident consultations before the RAD application through to post-conversion. These rights include the right to return to the converting property, the right not to be rescreened for eligibility, the right to choice mobility, and the right to retain organizing rights. These comprehensive protections are a hallmark of RAD and make it a highly desirable repositioning option for PHAs committed to serving their residents.
2. Use of Capital Funds and Operating Reserves
RAD allows PHAs to directly use capital funds and operating reserves as financing sources to support conversion activities. While most repositioning programs limit when and how public housing funds can be used, RAD offers greater flexibility, allowing PHAs to use public housing funds throughout the project’s life cycle. This includes pre-development costs, rehabilitation or development, resident relocation expenses, contributions to property reserves, and more. For PHAs with significant capital reserves, RAD presents a valuable opportunity to leverage those resources effectively.
3. Greater Predictability in Funding
One of the biggest challenges in managing public housing is the unpredictable nature of federal funding under the Section 9 platform, which Congress has historically underfunded. In contrast, Section 8—where PHAs land post-RAD—has enjoyed consistent bipartisan support, resulting in more stable appropriations. By converting to long-term Section 8 contracts through RAD, PHAs gain a more predictable and reliable revenue stream, enabling better planning and more strategic investments in housing and services.
4. Access to New Funding Sources
RAD’s transition to the less restrictive Section 8 platform, combined with improved funding predictability, opens the door to financing options previously unavailable to public housing properties. These include FHA loans, conventional loans, and tax credit equity. Access to such resources enables PHAs to tackle long-overdue repairs and enhance housing quality, ultimately creating safer, more livable homes for residents.
5. Removal of Regulatory Burdens
Though often well-intentioned, the public housing program is weighed down by regulatory requirements that burden PHAs with excessive paperwork and administrative complexity. RAD conversion helps alleviate this by shifting PHAs to a more streamlined regulatory environment under Section 8. This allows agencies to focus more on delivering quality housing and services, and less on bureaucracy. Additionally, this transition encourages PHAs to adopt a mindset more aligned with private real estate management, opening new avenues to raise capital, preserve assets, and elevate resident outcomes.
Find Out if RAD Fits Your Agency Goals
Reach out to the HPS Consulting Team here at D3G. As repositioning experts, we help your PHA determine the best strategy for meeting your mission.
