Rental Assistance Demonstration (RAD) PPRAC/UI Assisted Housing Mobility Conference June 12, 2012
HISTORY February 2010: FY11 Budget requests $350M for Transforming Rental Assistance (TRA) initiative May 2010: Preservation, Enhancement, and Transformation of Rental Assistance Act of 2010 (PETRA) - Administration s bill December 2010: Rental Housing Revitalization Act (RHRA) introduced by Rep. Ellison and co-sponsors February 2011: FY12 Budget requests $200M for a Rental Assistance Demonstration (RAD) August 2011: RAD language submitted as Technical Drafting Service (TDS) to Rep. Ellison, Rep. Bachus, and Senator Shelby November 2011: FY12 Appropriations minibus authorized RAD 2
CURRENT CHALLENGES Public Housing Capital repair needs in excess of $25.6B across portfolio, or $23,365/unit Section 9 funding platform unreliable (pro-rations, cuts), inhibits access to private debt and equity capital (deed of trust) Losing 10,000-15,000 hard units/year Section 8 Moderate Rehabilitation (Mod Rehab) Cannot renew on terms needed to secure financing Rent Supplement (RS) & Rental Assistance Payment (RAP) No option to renew when contracts expire 3
GOALS FY12 Rental Assistance Demonstration (RAD) Allows selected Public Housing & some at-risk assisted Multifamily programs to convert to long-term Section 8 Housing Assistance Payment (HAP) contracts Goals Build on proven Section 8 multifamily platform Leverage private capital to preserve public housing Offer residents greater choice & mobility 4
AUTHORITY Authorized as part of the Consolidated Further Continuing Appropriations Act of 2012 ( Public Law 112-55) Program Rules outlined in PIH Notice 2012-18 Two Components 1 st Component: Competitive Public Housing & Mod Rehab 2 nd Component: Non-competitive Mod Rehab, Rent Supp, & RAP 5
CONVERSION ELIGIBILITY Public Housing (Section I) Mod Rehab (Section II) Effective Immediately Rent Supp & RAP (Section III) Cap of 60,000 Units No cap, but subject to availability of TPVs PBRA PBV PBV 6
PUBLIC HOUSING PROVISIONS Ownership & Control Public or non-profit ownership or control, except: For-profit ownership to facilitate tax credits, or In foreclosure, bankruptcy, termination for cause, dispose first to capable public entity, then other capable entities as determined by Secretary Long-Term Affordability Initial Contract Term PBRA: 20 years PBV: 15 years (20 with approval of voucher agency) Contract Renewal: Secretary must offer, and PHA must accept Use Agreement: Long-term use agreement extended with each contract renewal 7
PUBLIC HOUSING PROVISIONS, CONT D No Re-Screening of Residents at Conversion One-for-One Replacement Must convert all or substantially all units in covered project Family Self Sufficiency Current FSS participants continue in program Resident Participation & Funding PHA must recognize legitimate tenant organizations PHA must provide $25 per occupied unit annually for resident participation ($15 per occupied unit > legitimate tenant organization Resident Procedural Rights Consistent with Section 6 of the 1937 Housing Act 8
RESIDENT NOTIFICATION & CONSULTATION PHA Requirements Prior to Conversion Conduct at least two meetings with residents to discuss conversion plans Address resident comments in writting Upon approval of initial application, conduct at least one more resident meeting Upon Issuance of RAD Conversion Commitment Notify each affected household that conversion of project has been approved Inform households of specific rehab plans and any impact of conversion Households in affected project(s) who do not want to transition to new program can be offered transfer to other PH if available 9
RESIDENT CHOICE-MOBILITY OPTION All Residents Offered a Choice-Mobility Option PBV Adhere to current program rules 1-year minimum residency Household must request comparable HCV before lease terminates Waitlist priority if comparable HCV is not immediately available 10
RESIDENT CHOICE-MOBILITY OPTION, CONT D All Residents Offered a Choice-Mobility Option PBRA Address limited turnover of HCVs 2-year minimum residency PHA may limit vouchers in any year to 1/3 of turnover vouchers, or moves to 20% of assisted units in project If limited by project cap, resident wait-list policy for HCVs to exercise choice-mobility option Good-cause exemption up to 10% of converted units for: PHAs/owners without voucher program, or PHAs with 1/3 of turnover vouchers committed to veterans or homeless persons Competition ranking factor for applicants who obtain/commit choicemobility vouchers 11