Rental Administration Demonstration Expanded to 185,000 Units

Spending Bill Proffers Additional
Authorization, Funding Changes

Rental Administration Demonstration Expanded to 185,000 Units The final HUD 2015 Budget authorized the Rental Assistance Demonstration (RAD) program to allow for conversion of up to 185,000 units of public housing.

The proposed Consolidated and Further Continuing Appropriations Act of 2015 (CR-Omnibus) also extend the demonstration period through 2018. This is a big win for the U.S. Department of Housing and Urban Development (HUD.)

In growing RAD from the current 60,000-unit cutoff, this legislation provides for the conversion of all properties on the RAD waiting list. With limited redevelopment options available to public housing authorities (PHAs), and a substantial public housing capital improvements backlog, the RAD provisions in the CR-Omnibus bill will open another avenue for some housing authorities to leverage capital for needed improvements.

However, the spending bill cut HUD program funding by $90 million, which is far less severe than the original proposal passed by the House. HUD’s Choice Neighborhoods Initiative, Home Investments Partnerships (HOME) program, and Community Development Block Grants (CDBG) are all on the chopping block in the CR-Omnibus bill, with allocations lower than fiscal year 2014 enacted levels.

The budget provides:

  • $80 million for the Choice Neighborhoods Initiative. The agreement includes language requiring that at least $50 million be made available to PHAs and provides up to $5 million to assist communities in developing strategies for implementing the program with community notice and input.
  • $900 million to remain available until September 30, 2018, for the HOME program.
  • $3.066 billion for the Community Development Fund, to remain available until September 30, 2017. Of the total, the agreement provides $3 billion in formula funding and $66 million for Indian tribes, including $6 million for grants for mold remediation and prevention.

Click here for the NLIHC budget summary.