On July 11, the RAD Team hosted an event, “Expanded Flexibilities in RAD: Key Changes in the Revised Notice,” which put to rest any doubts of RAD’s success. Although the event took place shortly after the release of the revised notice, many housing authorities that were unable to convert under the original notice have already begun to apply for RAD using the new flexibilities. Several large housing authorities have made known their consideration of multi-phase and portfolio-wide conversions, which could mean that the 60,000 unit cap will be reached before the end of the year. The RAD Team currently projects that the 60,000 cap will be reached sometime in the winter of 2013, as shown in the chart below.
The Administration’s Budget Request proposed a new cap of 150,000 (and extends the demonstration through 2015), but if this expansion is not included in the FY14 appropriations, a wait list for RAD conversion will be established.
The event itself consisted of a welcoming speech from HUD Secretary Shaun Donovan, two moderated panels, several workshops, and individual consultations with the RAD Team. Both Donovan and PIH Assistant Secretary Sandra Henriquez were present throughout the event—even fielding questions about how to make RAD deals work—showing their commitment to the demonstration. Paul Graziano, the Executive Director of the Baltimore City Housing Authority and a CLPHA member, participated in a panel and discussed the way that his housing authority may use the new flexibilities to recapitalize approximately 5,000 units.
A webcast of the event is available on HUD’s website, and the RAD Team will continue to host Live Q&A Sessions. In addition, the RAD Team has requested additional feedback on how the demonstration can be further improved. CLPHA will continue to advocate for increased flexibilities in the conversion process, a lifting of the unit cap, and funding for properties that need an incremental subsidy to convert.
Questions or comments about RAD can be directed towards Research and Policy Analyst Carmen Brick.