The Rental Assistance Demonstration (RAD) is a Department of Housing and Urban Development (HUD) program that provides Public Housing Agencies (PHAs) with funding to make necessary improvements to public housing properties. The RAD program is another HUD program in which contractors and builders can participate, but in order to be a HUD RAD conversion contractor builder in Tampa, there are key elements about the program both parties must understand first.
What Contractors Need to Know About RAD
Currently, public housing properties across the United States are in need of repairs worth around $26 billion dollars. Annually, thousands of units are demolished due to the lack of funds to repair them. RAD allows PHAs and property owners to convert units to project-based Section 8 programs and gives owners of the Rent Supplement, Rental Assistance Payment, and Section 8 Moderate Rehabilitation programs the opportunity to enter into long-term contracts that make financial improvements possible.
Benefits of Public Housing Conversions
With the RAD Program, public housing authorities can convert their public housing stock to long-term Section 8 contracts — Project-Based Rental Assistance (PBRA) or Project-Based Vouchers (PBV), and leverage public and private debt and equity financing to renovate, rehabilitate, demolish, or build their properties. Public Housing Conversions allow PHAs to meet local objectives, ensure long-term stability and affordability of converted properties, protect residents during conversion, and provide tenants with the option for a tenant-based voucher after a period of residency.
HUD RAD Conversion Contractor Builder in Tampa
It is estimated that more than 75,000 jobs have been created as a result of the RAD program, and that number is projected to climb. Section 8 contracts must be renewed annually and meet low-income household restrictions. Contractors and builders are advised to keep a watchful eye on new contracting opportunities. Of course, federal contracts come with increased oversight and regulations, so it is critical that contractors and builders make every effort to comply. More information about the RAD program can be found on HUD’s website. We also recommend that you connect with a HUD attorney from Cotney Construction Law for guidance on meeting RAD compliance in your HUD contracts, rehabilitation and construction, and financial efforts.
If you would like to speak with an experienced attorney about HUD RAD conversion opportunities and compliance, please submit our contact request form.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.