Enacted in 2012, the Rental Assistance Demonstration (RAD) Program is a government housing program run by HUD. The RAD program makes it easier for private capital to finance rehabilitation projects and permits homes that are now enrolled in HUD legacy programs to convert to HUD Section 8 housing, which is much better recognized.
Unit caps have increased due to RAD’s success
What is the Rental Assistance Demonstration (RAD) program? Is a frequent question that people ask? Congress approved more increases while 60,000 units were the initial number for conversion. Due to rising demand, 185,000 in 2015, 225,000 in 2016, and 455,000 in 2018 were allowed as well. According to reports, the program used just $250 million in government funding to support $2.5 billion in capital investment by 2015.
New construction projects are permitted by RAD under specific conditions
As long as you find acceptable accommodation for the property’s current occupants during the transition time, you are permitted to demolish an apartment building that is covered by qualifying HUD legacy programs and rebuild the property. Finding existing occupants a new place to live while construction is underway may not be necessary in some circumstances if you are able to create a new, reasonably priced house in a different area.
What are the advantages?
For investors, the Rental Assistance Demonstration (RAD) program provides several advantages. Through the program, homes that were previously enrolled in HUD legacy programs can now be converted to HUD Section 8 housing, which is easier to understand and provides for the financing of rehabilitation projects with private resources. Investors benefit from increased flexibility in obtaining financing for property repairs, including a simpler application process for the Low-Income Housing Tax Credit Program (LIHTC). Furthermore, the RAD program enables investors to turn their properties into long-term Section 8 contracts, contributing to the preservation of affordable housing in the United States.
How does the program operate?
The goal of the Department of Housing and Urban Development’s (HUD) Rental Assistance Demonstration (RAD) program is to assist investors in maintaining affordable housing in the United States. The RAD program enables investors to convert their housing into long-term Section 8 contracts through four HUD legacy programs. Investors benefit from increased flexibility in obtaining finance for property repairs, including a simpler application process for the Low-Income Housing Tax Credit Program.